Elon Musk has publicly demanded the dissolution of the Consumer Financial Protection Bureau (CFPB) amid President-elect Donald Trump's drive to trim down the federal government.

Helping lead Trump's federal cost reduction initiative, Musk is targeting the CFPB as it broadens tech oversight, which impacts his X social media platform, as the Daily Caller reports.

On Wednesday, the tech mogul voiced his demand via a post on X, formerly known as Twitter. This social media platform, which he owns, is at the heart of his critique against the federal agency.

Musk's discontent stems from the CFPB's expanded regulatory purview that now threatens to encompass the payment operations of his company.

The CFPB, established to oversee financial entities, has recently set its sights on large tech companies like Musk's, which are venturing into financial services.

Musk Advocates for Major Federal Cutbacks

As part of President-elect Donald Trump’s commitment to reducing government size, Musk has been a leading figure. Trump, during his campaign, frequently criticized excessive regulation of the financial sector.

However, he has not directly called for the closure of the CFPB.

Despite this, Trump's administration is expected to curb the CFPB's regulatory capabilities, aligning with Musk’s views.

This stance is somewhat distant from the more extreme measures like those proposed by the Heritage Foundation’s Project 2025, which Trump has not fully embraced.

A recent U.S. Supreme Court decision upheld the CFPB's funding structure, rejecting a lawsuit that aimed at its dismantling.

The Court confirmed in a 7-2 decision that the CFPB could legally receive its funding directly from the Federal Reserve, rather than through congressional appropriations.

Increased Scrutiny Over Tech Firms By CFPB

The CFPB’s new rule to oversee digital wallet services is a direct threat to Musk's ambitions for X. This rule could significantly affect how the platform operates financially, prompting Musk’s harsh critique.

In response to these regulatory expansions, Musk remarked on X, “The CFPB should be dismantled,” asserting that the oversight it proposes is redundant and would stifle innovation in the tech sector.

His vision for X extends beyond a mere social media network. In an internal meeting in October 2023, Musk outlined his plan to transform X into an "everything app," integrating various services including financial transactions.

Transformation of X Into "Everything App"

Musk envisions X evolving from a traditional social media platform into a comprehensive service application, a move that places it directly in the regulatory sights of agencies like the CFPB.

During this transformation, Musk expressed his broader vision, stating, “We’re rapidly transforming the company from what it was, Twitter 1.0, to the Everything app.”

This ambitious expansion into financial services makes the CFPB's interest in X almost inevitable.

The conflict between Musk's vision and the CFPB's regulatory goals sets the stage for a significant showdown as the agency looks to extend its influence into new areas of technology and finance.