An investigative report recently issued fearfully flags the Trump government’s increasing leniency towards law-breaking corporations. It looks like steps are being taken to shelve or dismiss probes into companies suspected of foreign bribery, safety breaches, unjust labor practices, and environmental offenses. This shift in enforcement across several agencies arrives as President Trump works hard to synchronize the federal government with his prime areas of focus, such as border and national security interests, at the expense of other sectors.
For slightly over a month, the recent administration has put brakes on or chased the dismissal of cases or investigations impacting no less than 89 companies. Remarkably, this accounts for a fourth of the noted investigations and enforcement being monitored leading up to the end of the Biden administration. The Trump government, it seems, is increasingly allowing regulatory lapses by these corporations.
New officials assuming positions at the Justice Department, the Securities and Exchange Commission (SEC), the Equal Employment Opportunity Commission, and the Consumer Financial Protection Bureau have been quick in altering priorities. In just the previous month, the president put his signature on an executive order suspending the enforcement of the Foreign Corrupt Practices Act. This highly critical law put forth after the Watergate scandal hinders US businesses from bribing overseas officials, however, Trump claims it obstructs U.S. national security interests.
Another major shift has the new SEC withdrawing from monitoring cryptocurrency businesses. Just recently, the administration put forth an agreement to dismiss a case against Coinbase, another cryptocurrency exchange. It appears that Trump views cryptocurrency firms as casualties of the government’s ‘weaponization’ engineered by previous administration’s cases.
In an unsurprising development, claims were made of more such changes to come, particularly highlighting the case dismissal of SoLo Funds by the administration. SoLo, a web-based lender, was under scrutiny for deceptive practices towards customers, manipulating them into accepting steep fees. This move was justified as an attempt to end the ‘weaponization’ of ‘consumer protection’.
Trump’s questionable comments suggest that companies are being ‘punished’ for breaking the law and this is being viewed as ‘weaponization’ instead of being a protective measure against corporate activities like high-priced scams, pollution, controversial employee termination and retaliation entails in the workspace and an array of hazards rooting from corporate avarice.
The implication here is that instead of perceiving these enforcement actions as a means to shield the public from corporate misconduct, they are being labeled as a ‘weaponization’ approach – undermining the severity of the issues at hand. This viewpoint, it is safe to say, diverges drastically from the traditional role of governance to protect the public from corporate misdeeds.
All these developments unfolding from an administration that seems to be in a hurry to dismiss investigations and cases against large corporations raises eyebrows. The questions around the cases of foreign bribery, ethical violations, unfair labor practices, and environmental crimes by the accused firms, warrant attention instead of dismissal.
New operatives in critical positions at the Justice Department, the Securities and Exchange Commission (SEC), the Equal Employment Opportunity Commission and the Consumer Financial Protection Bureau have shown their mettle in altering priorities swiftly. Most notably is the executive order signed by the president last month that paused the enforcement of the Foreign Corrupt Practices Act, owing to interferences in U.S. national security interests.
As an additional notable change in their approach, the administration withdrew from monitoring businesses dealing in cryptocurrency. The administration dismissed a charge against SoLo Funds, a key player in online lending. It is believed that this was done to put an end to the ‘weaponization’ of ‘consumer protection’.
This series of actions by Trump’s Justice Department in various cases further underscores the current administration’s unusual approach towards regulation enforcement while simultaneously pushing to align the federal government to their own priorities.
The recently implemented executive order freezing enforcement of the Foreign Corrupt Practices Act adds more fuel to this fire. This presents additional cause for concern as businesses are given increased latitude that threatens to run counter to U.S. national security interests.
The new approach under the Trump presidency – moving away from policing cryptocurrency firms – also raises serious questions about regulatory oversight. The logic that cryptocurrency enterprises are fall guys of the ‘weaponization’ of government induced by previous administrations continues to propagate.
The proposition to dismiss the case against SoLo Funds, an internet lender, suspected of misleading its clients into exorbitant fees keeps sending worrying signals. This dismissal was presented under the umbrella of ending the ‘weaponization’ of ‘consumer protection’. This narrative challenges the traditional notion of enforcement agencies as acting out of the public interest.
Looking at the bigger picture, the narrative that punishing corporations for legal violations is tantamount to ‘weaponization’ sounds surprisingly at odds with the administration’s role in enforcing the law and protecting the public. What these events portend for future actions by the Trump administration remains uncertain, but the pattern so far leaves much to ponder.