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Trump’s Republican allies unsettled by Elon Musk’s D.O.G.E

Trump’s Republican allies unsettled by Elon Musk’s D.O.G.E

CryptopolitanCryptopolitan2025/02/23 17:22
By:By Jai Hamid

Share link:In this post: Elon Musk’s D.O.G.E. has gutted the CFPB, firing employees, shutting down enforcement, and wiping the agency’s name off its headquarters—leaving Trump allies worried it could backfire in court. Russell Vought and other Trump officials fear Elon’s reckless approach could bring lawsuits, allowing the CFPB to survive instead of being quietly dismantled. Government employees are suing the Trump administration anonymously, afraid Elon’s attacks on X and mass firings could put them at ri

The Consumer Financial Protection Bureau (CFPB) is being torn apart by Elon Musk’s Department of Government Efficiency (D.O.G.E), and according to a Bloomberg report, not everyone in president Donald Trump’s circle is happy about it.

Since taking control in January, Elon has axed hundreds of employees, stalled investigations, and wiped the agency’s name off its headquarters in Washington, D.C. Trump called it a win, saying his administration had “virtually shut down CFPB.”

But behind closed doors, some of his top aides are reportedly worried Elon is moving too fast and could blow everything up in court.

Russell Vought, who runs the Office of Management and Budget and is also acting CFPB director, has reportedly shared concerns about D.O.G.E’s lack of discipline. Him and other Trump allies fear Elon’s aggressive tactics could lead to lawsuits, and if a judge intervenes, the CFPB could survive.

Notably, the Bloomberg report says a spokesperson for Vought denied any tensions exist, calling the reports “false and just another ax-to-grind story against D.O.G.E.”

D.O.G.E slashes CFPB without a clear plan

Elon’s team has been wiping out agencies across the federal government since Trump’s inauguration, with D.O.G.E workers firing thousands of employees, canceling contracts, and gutting programs they say don’t fit Trump’s agenda. The Heritage Foundation’s Project 2025—a conservative blueprint for the government—called for Congress to eliminate the CFPB, but Elon has bypassed lawmakers completely.

Now, D.O.G.E employees are operating out of the CFPB’s basement, tearing through agency contracts, asking staff which ones are required by law, and looking for anything they can cut. When they first arrived, CFPB employees were shocked—according to the report, it seemed like the D.O.G.E team had no idea what the agency even did.

See also Federal Reserve might cut rates because of Trump's tariffs

The confusion hasn’t slowed them down. Office leases are being reviewed, and oversight of major banks and fintech companies has come to a halt.

Former CFPB Director Rohit Chopra slammed Elon’s actions, saying, “Defunding the police that watches over Wall Street and Big Tech will cost consumers billions. The only ones who benefit from shutting down the CFPB are companies that break the law.”

Federal employees sue Trump in fear of retaliation

As Elon’s D.O.G.E fires workers across Washington, some government employees are reportedly fighting back in court—but anonymously.

A group of workers from USAID (U.S. Agency for International Development) persuaded a Maryland judge to let them sue the administration without revealing their names, saying they fear online harassment, losing their jobs, or worse.

Federal courts almost never allow plaintiffs to remain anonymous, except in cases involving sexual assault, minors, or extreme retaliation risks. But now, a judge has approved anonymity for two employees suing the Office of Personnel Management, letting them go forward as “Jane Doe 1” and “Jane Doe 2.”

The ruling, signed by Judge James Boasberg, says the plaintiffs provided “legitimate concerns about both physical and mental harm.” Boasberg also blocked the administration from firing any more workers until early March.

The lawsuits against Trump’s executive orders have mostly come from labor unions, nonprofits, and advocacy groups, but now individual workers are stepping up.

See also Trump revives tariff probe over foreign digital taxes on US Tech

Many fear Elon’s online attacks, which target bureaucrats directly to his massive audience on X. One of his posts, where he called USAID a “criminal organization” that “needs to die,” got 33 million views.

Elon’s digital payment ambitions and the fall of CFPB

The fight over CFPB is also about digital payments. The CFPB oversees payment companies, and Elon has long criticized its interference in private business. Now, with his plans to turn X into a payments powerhouse, removing the CFPB gives him an open playing field.

The CFPB was created under Barack Obama, and under Joe Biden, it took on major corporations like Walmart and Capital One. Now, it’s barely functioning. Former Director Vought’s stop-work order froze the agency’s biggest division—consumer financial oversight—shutting down investigations into credit cards, mortgages, and the housing market.

There are also claims that Trump’s administration is trying to delete sensitive CFPB records. Bloomberg’s report claims a former chief technologist at the agency filed a legal complaint, saying officials were about to wipe a financial database with key regulatory information. A federal judge temporarily blocked the deletion, but no one knows how long the order will hold.

Senator Elizabeth Warren, one of the CFPB’s original creators, is now pushing back. She scheduled a hearing for Tuesday to showcase what the agency has done for consumers, and personally invited Elon to attend. As of press time, he hadn’t RSVP’d.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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