The states sought to provide input on how the CFPB impacts ‘consumer financial markets’ and their own regulatory abilities.
08/22/2023 1:45 P.M.
1.5 minute read
A request from Republican state attorneys general to participate in oral arguments for the U.S. Supreme Court’s case on the Consumer Financial Protection Bureau’s funding structure was denied by the court this week.
West Virginia’s attorney general Patrick Morrisey and attorneys general from 26 other states had filed an amicus brief (PDF) in the case, Consumer Financial Protection Bureau v. Community Financial Services Association of America, that the appropriations process is a vital tool for Congress to supervise federal agencies, ACA International previously reported.
The attorneys general then filed a petition (PDF) to participate in the oral arguments, stating they have a “special understanding of how an unbounded CFPB can damage the consumer-financial markets—and impair the [s]tates’ own abilities to regulate those markets,” according to an article from Bloomberg Law.
The Supreme Court denied the petition. According to ACA member firm Barron & Newburger P.C., denial for petitions to participate in oral arguments from amici curiae is not unusual.
In all, dozens of amicus briefs in support of the CFPB and against were filed with the Supreme Court, which will hold the oral arguments Oct. 3.
The 5th Circuit Court of Appeals issued a ruling that the CFPB’s funding structure violates the appropriations clause in the fall of 2022 after CFSA filed suit. The CFPB appealed the decision, and its petition for the Supreme Court to review the case was granted, ACA International previously reported.
The CFPB requested that the Supreme Court address whether the 5th Circuit Court of Appeals erred in its ruling that the bureau’s funding structure through the Federal Reserve rather than the congressional appropriations process violates the U.S. Constitution’s separation of powers.
A decision is expected from the Supreme Court to be issued between December 2023 and the end of June 2024.