In CFPB v. Law Offices of Crystal Moroney, a three-judge panel of the U.S. Court of Appeals for the Second Circuit unanimously ruled in March 2023 that the CFPB’s funding structure does not violate the Appropriations Clause of the U.S. Constitution and rejected Moroney’s attempt to invalidate the CFPB’s civil investigative demand issued to Moroney.  Last week, Moroney filed a petition for a writ of certiorari in the U.S. Supreme Court.

In its decision, the Second Circuit panel expressly declined to follow the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB that reached the opposite conclusion.  In February 2023, the Supreme Court granted the CFPB’s certiorari petition seeking review of the Fifth Circuit decision and agreed to hear the case next Term.  Moroney’s petition asks the Court to hold the petition pending its decision in CFSA and to then dispose of the petition as appropriate in light its decision.  It seems unlikely that the CFPB will oppose Moroney’s petition.

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