CFPB director Mick Mulvaney is preparing to hand the reins to Kathleen Kraninger. While her nomination process grows contentious, Mulvaney is leaving his mark on the agency, creating an Office of Innovation and launching a regulatory sandbox.
On Thursday, the Senate Committee on Banking, Housing, and Urban Affairs held a confirmation hearing[1] for Kathleen Kraninger[2] to become director of the Consumer Financial Protection Bureau (CFPB). President Trump nominated[3] her for the position in June. Kraninger, whose qualifications have come[4] under[5] fire[6], presently serves as associate director for general government within the Office of Management and Budget (OMB), which, coincidentally, is led by the CFPB's current acting director, Mick Mulvaney.
Readers may remember that since November 2017[7], Mulvaney has held leadership roles for both the OMB and CFPB. Although his dual responsibilities were the subject of much legal dispute (and remain controversial[8]), a judge allowed him to hold the positions concurrently. Mulvaney's tenure at the CFPB has been marked by bouts of hostility. Last month, after he was chastised by members of the CFPB's Consumer Advisory Board for apparently canceling legally mandated meetings, Mulvaney effectively fired the entire board[9].
In what are likely Mulvaney's last days at the CFPB, he has made a series of unusual moves for the agency, indicating a FinTech focus. On Wednesday, Mulvaney appointed[10] attorney Paul Watkins as head of the agency's newly created Office of Innovation. Previously, Watkins oversaw FinTech initiatives for the office of the attorney general of Arizona, including a regulatory sandbox.
The CFPB's Office of Innovation will reportedly examine blockchain technology and cryptocurrencies, as well as peer-to-peer lending and private currencies. This future
