The US Senate has voted to strip the Consumer Financial Protection Bureau (CFPB) of its power to regulate digital payment platforms, a move that could have significant implications for the tech industry and raises questions about Elon Musk's potential conflicts of interest. The resolution, which still requires House approval, would effectively nullify a rule finalized by the CFPB last year establishing its authority to monitor digital payment offerings.

At the center of the controversy is Elon Musk, the owner of social media company X, who has become the public face of the Department of Government Efficiency (DOGE), a government office seeking to shrink the CFPB's workforce. Two Democratic lawmakers, Sens. Elizabeth Warren (D-MA) and Adam Schiff (D-CA), are calling on the Office of Government Ethics (OGE) to investigate Musk's compliance with federal ethics laws, citing potential conflicts of interest arising from his financial interests and work with DOGE.

The CFPB rule in question would have allowed the agency to keep tabs on digital services like X's planned venture into payments for fraud and privacy issues. This has raised concerns that Musk could be serving his own financial interests by kneecapping a regulator that would have direct oversight of at least one of his businesses. The White House has previously offered vague assurances that Musk would not work on matters that present a conflict of interest, but he has not done much to distance himself publicly from DOGE's work at the CFPB.

In a letter to the OGE, Warren and Schiff express concerns that Musk's actions could directly benefit X, Visa, and Tesla, and by extension, himself. They point out that Musk, as a "special government employee," is subject to conflict of interest laws and may have violated the criminal conflict of interest statute if he has taken actions in his federal role that benefit his financial interests without receiving appropriate waivers and approvals.

The Senate vote has sparked a heated debate about the role of government regulation in the tech industry. Republicans who introduced the resolution argue that it is a necessary correction to the CFPB's overreach and will ensure the agency doesn't stand in the way of innovation. However, Democrats and consumer advocates argue that the move would strip the CFPB of its authority to protect consumers from fraud and privacy issues in the digital payment space.

The controversy highlights the complex web of interests and alliances in the tech industry and raises important questions about the potential for conflicts of interest to influence policy decisions. As the resolution moves to the House for approval, lawmakers and industry observers will be watching closely to see how this issue plays out.