On February 6, the CFPB filed an unopposed motion to stay litigation pending in the U.S. District Court for the District of Columbia between the CFPB and a large tech company. As covered previously by InfoBytes, this litigation stemmed from a November 2024 decision and order issued by the CFPB that designated the company as a covered person subject to the Bureau’s supervisory oversight pursuant to Section 1024(a)(1)(C) of the CFPA. Mirroring similar requests in other pending actions involving the CFPB, the motion to stay explained that Secretary of the Treasury Scott Bessent had been appointed to serve as the Acting Director of the Bureau and that the CFPB’s new leadership plans to “review the November 8, 2024[,] decision and order that designated Plaintiff for supervision and which is the subject of this litigation.” The motion notes that, following this review the “Acting Director could take action to withdraw or modify the Decision and Order” which could ultimately render this case moot.
To provide the CFPB’s new leadership with time to decide how to proceed with respect to the decision and order, the motion requested a stay of 90 days, during which the CFPB would not exercise any supervisory authority under the decision and order. The Parties agreed to provide the Court with a joint status report upon expiration of the stay. On February 7, the court granted the requested 90-day stay via docket text entry, ordering the parties to submit a status report by May 8.
