Coinbase cheers demise of CFPB as customer complaints mount to almost 8,000

Coinbase co-founder and CEO Brian Armstrong cheered the thought to shutter the Consumer Financial Protection Bureau.

“100% the close call,” Armstrong wrote successful February. He was responding to a taunt by Elon Musk, who posted an representation of a tombstone and the enactment “CFPB RIP.”

The bureau was gutted by Donald Trump’s medication astir the aforesaid time, to cheers by Armstrong and different crypto execs similar Tyler Winklevoss of Gemini.

What Armstrong didn’t notation was that the CFPB had received 7,775 complaints from Coinbase customers since the exchange’s debut successful 2011.

The astir caller complaint to the CFPB was filed connected February 22. The reports scope from 1,734 complaints astir issues with funds not being disposable erstwhile promised to 1,879 complaints astir imaginable scams.

The CFPB was created — and championed by Democratic Senator Elizabeth Warren — much than a decennary agone successful the aftermath of the planetary fiscal crisis.

It was intended to supply consumers a mode to triumph backmost funds mislaid to scams portion holding companies liable for predatory concern practices.

“The CFPB is unconstitutional connected the look of it,” Armstrong continued. “And adjacent if it wasn’t, it should beryllium deleted arsenic we already person [the] DOJ to prosecute fraud, and (many) different fiscal services regulators. It’s an activistic organisation that has done tremendous harm to the country.”

A assemblage enactment connected Armstrong’s tweet points retired that the Supreme Court ruled successful favour of the CFPB’s constitutionality last year.

Coinbase, which declined to remark to DL News, came under occurrence successful December for locking users retired of accounts.

And a justice last month refused to disregard a people enactment suit against Coinbase successful New York, which alleged that the steadfast illegally sold securities without registering arsenic a broker-dealer, according to Reuters.

Coinbase told Reuters that it does not list, offer, oregon merchantability securities connected its exchange, adding: “We look guardant to vindicating the remaining claims successful the territory court.”

Limbo

The presumption of the CFPB remains successful limbo. In February, acting manager Russell Vought ordered a halt to all enactment astatine the agency — a motion immoderate unfastened cases related to user extortion laws volition beryllium dropped.

In response, the National Treasury Employees Union has brought a suit against the medication implicit what it calls the “unlawful dismantling of the CFPB.”

In a recent filing, Coinbase warned investors astir the interaction CFPB policies and actions have, and could have, connected its business.

“Market disruptions person led to definite attempts by user extortion focused agencies, including the CFPB, to straight modulate the crypto industry,” Coinbase wrote.

Armstrong, who notched a triumph against the Securities and Exchange Commission erstwhile the bureau dropped its suit against the exchange, has expressed a dim view of regulation.

He’s a large backer of Fairshake, a crypto-backed governmental enactment committee that spent a grounds $41 cardinal connected pro-industry candidates successful the 2024 election.

Robinhood

Armstrong’s stance contrasts, astatine slightest publicly, with Robinhood CEO Vlad Tenev, who has said his retail banal and crypto speech benefits from regulatory oversight.

Robinhood customers person logged immoderate 2,028 complaints to the CFPB since the company’s debut successful 2013. That’s astir a 4th of those logged for rival Coinbase.

However, the ailment tallies broadly align with the companies' lawsuit bases — Robinhood has astir 24 cardinal users, portion Coinbase says it has much than 100 million.

Andrew Flanagan is simply a markets analogous for DL News. Have a tip? Reach retired to [email protected].