Technology
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Technology
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Musk's X payment plans loom over CFPB seige
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Elon Musk’s plans to add payment services to X, his social media platform, are looming large over the Trump administration’s push to dismantle the Consumer Financial Protection Bureau (CFPB).
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© Alex Brandon, Associated Press
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The tech billionaire has long voiced his hopes of turning X into an “everything app” that would also function as a payment platform, a vision brought one step closer to reality last month after X struck a deal with Visa to launch a digital wallet.
While Musk draws nearer to his goal of making X a payment platform, he has also become a leading force behind the Trump administration’s cost-cutting efforts, which have effectively gutted the CFPB.
As Musk zeroes in on the agency that oversees digital payment platforms, questions are swirling about how he could personally benefit from rolling back the CFPB’s oversight capabilities.
“It’s important to raise the question of why the new administration is going after a tiny agency that is smaller than some high schools that does very important consumer protection work,” a former CFPB official said.
“The writing has been on the wall for a while in terms of Musk's animosity for the CFPB— someone who has also been very clear about wanting to turn X into the everything app, the payments app [and] the CFPB is the primary payments regulator at the federal level.”
Under Biden-era chief Rohit Chopra, the CFPB finalized a rule in November that brought nonbanks offering digital payment apps under its supervision, giving the agency greater authority to oversee companies like Apple, Google, PayPal and Venmo.
It also opened up comments on a proposed rule in early January about implementing the Electronic Fund Transfer Act, which aims to protect consumers against errors and fraud from digital payment mechanisms. The rule sought to apply the law to cryptocurrencies and stablecoins.
President Trump fired Chopra upon taking office, giving Musk and the Department of Government Efficiency (DOGE) room to begin its overhaul of the CFPB.
Musk’s DOGE officials directed the agency to freeze all work and fired about a hundred people from the 1,700-person workforce.
While Trump also moved to weaken the consumer watchdog during his first term in office, his allies have gone further this time to sideline the agency that has long been a source of frustration among conservatives.
A federal judge barred the administration from firing CFPB staff en masse or deleting the agency’s data earlier this month amid concerns such steps were imminent.
However, government lawyers denied in a court filing Monday that the administration seeks to eliminate the agency.
Read more in a full report at TheHill.com tomorrow morning.
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Welcome to The Hill’s Technology newsletter, we're Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley.
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How policy will be impacting the tech sector now and in the future:
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Elon Musk’s push to reduce the federal workforce is running into headwinds as Senate-confirmed Cabinet and agency officials block his immediate efforts to carry out the Department of Government Efficiency’s (DOGE) plans. Musk’s weekend directive for government employees to respond with bullet points describing what they accomplished in the past week under the threat of termination was not thwarted by courts or independent …
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Apple shareholders rebuffed an attempt to pressure the technology trendsetter into joining President Donald Trump’s push to scrub corporate programs designed to diversify its workforce. The proposal drafted by the National Center for Public Policy Research — a self-described conservative think tank — urged Apple to follow a litany of high-profile companies that have retreated from diversity, equity and inclusion initiatives …
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More than 20 staffers who worked in the federal department overtaken by the Department of Government Efficiency (DOGE) resigned Tuesday, saying they won’t use their technical skills to “jeopardize” Americans’ data and “compromise” essential government systems. The 21 employees worked in the United States Digital Service (USDS) office, the technology unit that became DOGE, an advisory board led by tech billionaire Elon …
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The Federal Aviation Administration (FAA) said it is testing the use of Elon Musk’s Starlink internet platform to fix connectivity issues in U.S. airspace. The agency, on Monday, stated that some remote areas in the U.S. have “long” had problems with providing reliable weather information for the aviation community. “That is why the FAA has been considering the use of Starlink since the prior administration to increase …
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Bitcoin rattled by uncertainty
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© Associated Press/Kin Cheung
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Welcome to Crypto Corner, a new feature in The Hill's Technology newsletter focused on digital currency and its outlook in Washington.
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Bitcoin hit a three-month low Tuesday, dropping more than 8 percent to $87,262 . This was the crypto coin's lowest value since November, when it slid to about $86,128.
Other cryptocurrencies like Ethereum and XRP each fell by more than 7 and 9 percent, respectively.
The drops mark a notable moment for cryptocurrency market, which rallied for weeks following President Trump's victory. Just over a month ago, Bitcoin hit its all-time high value of more than $109,000 on Trump's inauguration day.
Now about 20 percent lower than the all-time high, observers suggested the industry is facing some uncertainty despite Trump's assurances he planned to make the U.S. the "crypto capital of the world."
Trump took a variety of pro-crypto actions shortly after coming back to the White House, including the creation of an AI and crypto czar role to help oversee the administration's pro-crypto policies.
He also signed an executive order on crypto in his first week of office, though it did not include language on a strategic bitcoin reserve as some industry players hoped.
With little catalyst to push prices back up, the market is lagging.
Plus: This week's changes come amid wider concerns following a breach at ByBit, a major cryptocurrency exchange. North Korea hackers allegedly stole $1.5 billion worth of digital currency, stirring up uncertainty in the market.
Read more in a full report at TheHill.com.
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News we've flagged from the intersection of tech and other topics:
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OpenAI rolls out deep research for paying ChatGPT users (TechCrunch)
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DOGE working on software to automate firing of government workers (WIRED)
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Branch out with other reads on The Hill:
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Senate Democrats press Trump’s FTC commissioner nominee over agency independence
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Multiple Senate Democrats on the Commerce, Science and Transportation on Tuesday pressed President Trump’s Federal Trade Commissioner nominee, Mark Meador, over the independence of the agency amid concerns the White House could seek to influence the agency’s enforcement efforts. Meador, who appeared before the committee for his confirmation hearing, largely maintained he plans to “serve the American people.” …
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A former Department of Veterans Affairs cybersecurity official warned that the Department of Government Efficiency’s (DOGE) access to the department’s information threatens sensitive data stored within the organization. Jonathan Kamens, who previously led cybersecurity for the VA’s website, warned that financial and health data could be compromised through DOGE’s actions. “Given how the government has been functioning for the …
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Two key stories on The Hill right now:
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A federal judge on Tuesday indefinitely blocked the Trump administration’s freeze of federal funding, dealing a stark blow to President Trump’s sweeping … Read more
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The Trump administration said Tuesday that it would be revamping the U.S. investor visa, increasing the funds required to secure the status while dubbing … Read more
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Opinion related to tech submitted to The Hill:
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You're all caught up. See you tomorrow!
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Save story
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Lawmakers questioned whether Elon Musk was conflicted in his moves to dismantle the CFPB, highlighting his recent plan to launch a digital payments service.
CNBC - 7h
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Lesley Stahl reports on President Trump’s efforts to halt the work and cut the funding of the Consumer Financial Protection Bureau, an enforcement agency that was created in response to the 2008 ...
CBS News - 3d
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The fired head of the Consumer Financial Protection Bureau said he sees the attack against the agency as "suspicious."
CBS News - 2d
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The Consumer Financial Protection Bureau, a watchdog agency created to protect consumers, is under fire by President Trump and DOGE. Its new head ordered work to stop and funding to end.
CBS News - 2d
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As vast swaths of Congolese territory are seized by a Rwandan-backed armed group, Congo’s president looks to make a minerals deal with the United States.
The New York Times - 3d
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Three years after Russia’s invasion, UPL teams dream of a seat at Uefa’s top table to avoid an uncertain financial future. Last Friday, Kolos Kovalivka opened the second half of this Ukrainian ...
The Guardian - 1d
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Keir Starmer’s government warns of further sanctions unless Kigali withdraws troops from its east African neighbour
Financial Times - 8h
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First, a report on the upheaval at the Justice Department. Then, a look at why the CFPB is under fire by President Trump, DOGE.And John Oliver: The 60 Minutes Interview.
CBS News - 1d
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Sen. Elizabeth Warren (D-Mass.) is pressing President Trump's nominee to lead the Consumer Financial Protection Bureau (CFPB) about his loyalty to the Trump administration and whether he would ...
The Hill - 10h
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Arizona Gov. Katie Hobbs (D) has signed an order “to combat the cartels, stop drug smuggling, and secure Arizona’s border,” the governor said in a Tuesday news release. The executive order requires ...
The Hill - 2h
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The White House on Tuesday unveiled the interim administrator at the Department of Government Efficiency (DOGE) as Amy Gleason. The disclosure of the interim administrator’s identity came in the ...
The Hill - 2h
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Jacqui Heinrich, Fox News's senior White House correspondent, sharply criticized the White House's decision to take over the press pool from the White House Correspondents' Association (WHCA), ...
The Hill - 2h
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Rep. Byron Donalds (R-Fla.) announced he's running for Florida governor on Tuesday, becoming the first major candidate to jump into the race. “I’m here to announce my candidacy as the next governor ...
The Hill - 3h
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Welcome to The Hill's Defense & NatSec newsletter {beacon} Defense &National Security Defense &National Security The Big Story Hegseth visits Gitmo Defense Secretary Pete Hegseth on Tuesday ...
The Hill - 3h
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Arizona Gov. Katie Hobbs (D) has signed an order “to combat the cartels, stop drug smuggling, and secure Arizona’s border,” the governor said in a Tuesday news release. The executive order requires ...
The Hill - 2h
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The White House on Tuesday unveiled the interim administrator at the Department of Government Efficiency (DOGE) as Amy Gleason. The disclosure of the interim administrator’s identity came in the ...
The Hill - 2h
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Confusion among federal workers over mixed messages on Elon Musk email; How FDR-era Supreme Court ruling relates to disputes over Trump firings
CBS News - 2h
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Politico - 2h
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Jacqui Heinrich, Fox News's senior White House correspondent, sharply criticized the White House's decision to take over the press pool from the White House Correspondents' Association (WHCA), ...
The Hill - 2h
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