Wed Feb 26 03:00:00 UTC 2025: ## Senate Hearing to Shed Light on CFPB’s Future Direction Under New Nominee

**Washington D.C.** – This Thursday, the Senate Banking Committee will hold a hearing on several department nominees, including Jonathan McKernan, President Biden’s pick to lead the Consumer Financial Protection Bureau (CFPB). McKernan’s nomination, following the dismissal of Rohit Chopra, raises questions about a potential shift towards a less regulatory approach at the agency.

Recent actions by acting director Russell Vought suggest this shift may already be underway. Last week, the CFPB dropped a lawsuit against online lender SoLo Funds, a case alleging the use of “digital dark patterns” to illegally collect fees. Vought stated on social media that the agency had wrongly targeted SoLo, causing significant financial harm. This dismissal, described as “with prejudice,” prevents the case from being revived.

McKernan’s background as a former FDIC board member offers clues to his potential leadership style. He has previously expressed concerns about excessive regulation, stating that the FDIC “harbored a presumption against deposit insurance” for certain applications. He has also advocated for reducing prescriptive regulation and allowing for “creative disruption” within the financial services industry.

The hearing will be closely watched, particularly given the current freeze on all CFPB rulemaking, impacting areas like overdraft rules and “buy now, pay later” regulations. There is also the possibility of Congress using the Congressional Review Act to overturn existing CFPB rules. The Senate hearing will likely provide further insight into McKernan’s vision for the CFPB and the future of consumer financial protection under his leadership.

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