Musk, DOGE Too Conflicted to Touch the CFPB
WASHINGTON, D.C. – Public Citizen today called on the Office of Government Ethics to direct Elon Musk and his agents to desist from any activity related to the U.S. Consumer Financial Protection Bureau (CFPB).
Musk intends to create a payment service associated with his social media platform Twitter/X. Because the CFPB would regulate such a project, any work by Musk and his agents at the CFPB creates a conflict of interest that violates the law. Regulation of payment products such as the one envisioned by Musk falls within the CFPB’s purview.
The White House designated Elon Musk as a special government employee, according to news reports, and/or “an employee in the White House office,” according to legal filings. He is therefore subject to 18 USC 208, which prohibits engaging in official business in which he has a financial interest.
Musk has promised to turn Twitter – renamed X – into an “everything” product that includes a PayPal-like payment service. He recently signed an agreement with Visa for use of its digital payment network to allow users on X to make debit card payments to their peers. Concerns about misconduct involving this payment system are real, as at least nine agencies are already investigating misconduct at three of Musk’s businesses.
Separately, Musk’s access to data and other information held by the CFPB raises concerns that he may be privy to confidential information about potential rivals, including conventional banks and tech companies. As noted by The New York Times, the CFPB “has opened several investigations of e-payments systems. The data collected in its investigations includes correspondence between executives, secret business plans and market analysis.”
The Office of Government Ethics “works to prevent financial conflicts of interest to help ensure government decisions are made free from personal financial bias.” This work includes monitoring senior leaders’ compliance with ethics commitment and ensuring agencies comply with ethics program requirements. Public Citizen is asking the Office to ensure compliance with conflicts law by directing Musk and his DOGE associates to cease any involvement now and in the future at the CFPB.