Trade groups representing the payday lending industry, which brought the case, argue the U.S. Constitution prohibits the current arrangement in which the Federal Reserve supplies the CFPB's funding. The CFPB regulates and polices consumer finance industries, including payday and title lending, as well as mortgage origination.
"The CFPB's future is at stake in this court decision, along with the future of every other banking regulator," Warren, who helped create the CFPB following the 2007-2008 financial crisis, said in prepared remarks.
Warren noted that other banking regulators, including the Fed itself and the Federal Deposit Insurance Corp., as well as Social Security and Medicare, are funded outside Congress' annual budget-setting process.
