A coalition of fintech, crypto, and retail industry trade groups is calling on the US Consumer Financial Protection Bureau (CFPB) to implement a strong open banking rule that ensures consumers maintain control over their financial data.
The letter shared with Cointelegraph has been endorsed by prominent crypto advocacy organizations, including the Blockchain Association and the Crypto Council for Innovation, as well as fintech and industry entities such as the Financial Technology Association, American Fintech Council, and others representing retailers and small businesses.
This letter addresses the CFPB’s examination of the Personal Financial Data Rights Rule under Section 1033 of the Dodd-Frank Act, which aims to specify how consumers can share their financial data with third-party services.
The coalition emphasized its support for clear consumer data rights and encouraged the CFPB to finalize an open banking rule that asserts Americans own their financial data, rather than large banks. They stated that consumers should have the freedom to share their data with any authorized third party, not just fiduciaries.
The coalition also implored the CFPB to maintain the existing prohibition on data access fees, affirming that the rule should protect a free and competitive market and that this prohibition is already firmly established in law.
Open banking was initially proposed in the US during former President Joe Biden’s administration in 2022 and finalized on October 22, 2024.
This framework enables consumers to securely share their financial data with third-party applications through APIs (application programming interfaces), creating a vital connection between traditional finance and sectors including decentralized finance (DeFi) platforms, crypto on-ramps, and digital banking services.
The letter asserts that open banking is utilized by “over 100 million Americans” to access tools like investment platforms, crypto wallets, and digital payment applications for managing their finances and operating businesses.
“Yet these rights are under attack,” the letter warns. “The nation’s largest banks wish to roll back open banking, undermine consumer financial data sharing, and eliminate competition to preserve their market positioning.
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Banks push back on open banking
While open banking already operates in the European Union, the UK, Brazil, and several other nations, significant opposition to the rule in the US has emerged from major banks.
The same day the rule was finalized in October 2024, the Bank Policy Institute, a trade association representing major banks like Wells Fargo, Bank of America, and JPMorgan Chase, filed a lawsuit to block it, claiming it posed security threats and unfairly burdened existing institutions.
On July 11, a Bloomberg report indicated that JPMorgan aimed to start charging fintech companies for access to their customers’ banking information.
Crypto industry steps up pressure on Washington
Tuesday’s letter builds upon an earlier appeal sent by the coalition to US President Donald Trump on July 23, accusing US banks of hindering innovation by delaying open banking reforms and imposing data-access fees for fintech and crypto platforms.
On August 14, more than 80 leaders from the crypto and fintech sectors signed a letter urging the President to stop banks from charging fees on companies accessing customer financial data.
On Monday, Gemini co-founder Tyler Winklevoss posted on X: “Banks want to undermine the Open Banking Rule (1033) to control and monetize your financial data, stripping away your choice of services. This is detrimental to crypto and financial innovation in the U.S.”
Tomorrow marks the deadline to submit a comment letter to the CFPB regarding its proposed open banking rule.
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