On July 15, 2026, CFPB Acting Director Russell Vought testified before House lawmakers, recommending that Congress enact legislation to better define "unfair, deceptive, or abusive acts or practices" and fund the bureau through congressional appropriations to ensure greater responsiveness to elected officials. Additionally, he announced that the bureau is nearing the proposal of a new open banking rule.
According to the ABA Banking Journal's report, Vought’s discussions about potential reforms to the CFPB have focused on the agency’s authority and funding structure. Vought said Congress may consider clarifying the definition of “abusiveness” under the UDAAP framework, following concerns that the CFPB had previously expanded the statutory definition of “unfairness” to include discrimination. Vought also identified congressional control over the CFPB’s funding as the most significant potential reform, arguing that the bureau’s current funding through the Federal Reserve rather than through the congressional appropriations process creates a significant accountability concern.
The CFPB is also preparing changes to its implementation of Section 1033 of the Dodd-Frank Act, commonly referred to as the “open banking” rule. The provision requires financial institutions to make consumer financial information available to consumers or authorized third parties at the consumer’s direction. Vought indicated that the CFPB is close to issuing a proposed rule to replace its previous Section 1033 rule, although the timing may be coordinated with the possible Senate confirmation of Brian Johnson, President Trump’s nominee to serve as the bureau’s full-time director.
Read the ABA Banking Journal’s report here.