An alliance composed of trade groups from the fintech, cryptocurrency, and retail industries is urging the U.S. Consumer Financial Protection Bureau (CFPB) to adopt strong open banking rules to ensure consumers have control over their financial data.
This letter, shared with Cointelegraph, is signed by leading cryptocurrency advocacy groups—including the Blockchain Association and the Crypto Council for Innovation—as well as fintech and industry organizations representing retailers and small businesses, such as the Financial Technology Association and the American Fintech Council.
The letter responds to the CFPB's review of the personal financial data rights rule under Section 1033 of the Dodd-Frank Act, which will define how consumers share their financial data with third-party services.
The alliance supports clear consumer data rights and urges the CFPB to finalize an open banking rule that confirms Americans own their financial data, rather than large banks. These groups argue that consumers should be free to share that data with any authorized third party, not just custodians.
The group also urges the CFPB to maintain the current ban on data access fees, stating that the rule must uphold a free and competitive market, and that this ban is clearly established in law.
Open banking was initially proposed in the U.S. during the administration of former President Joe Biden in 2022 and is set to be finalized on October 22, 2024.
The framework allows consumers to securely share financial data with third-party applications via APIs (Application Programming Interfaces), forming a critical bridge between traditional finance and decentralized finance (DeFi) platforms, cryptocurrency deposit channels, and digital banking tools.
The letter claims that "over 100 million Americans" rely on open banking to access tools such as investment platforms, crypto wallets, and digital payment applications to manage their finances and run their businesses.
"However, these rights are under attack," the letter states. "The largest banks in America want to roll back open banking, weaken consumer financial data sharing, and stifle competition to protect their market position."
While open banking already exists in the EU, UK, Brazil, and several other countries, major banks in the U.S. have pushed back against the rule.
On the same day the rule is finalized on October 22, 2024, the Bank Policy Institute, representing major banks like Wells Fargo, Bank of America, and JPMorgan Chase, filed a lawsuit to block the rule, claiming it poses security risks and unfairly burdens existing institutions.
On July 11, a Bloomberg report revealed that JPMorgan plans to start charging fintech companies for access to their customers' banking data.
Tuesday's letter builds on an earlier appeal the alliance sent to U.S. President Donald Trump on July 23, accusing American banks of delaying open banking reforms through lawsuits and introducing data access fees for fintech and cryptocurrency platforms to stifle innovation.
On August 14, over 80 executives from the cryptocurrency and fintech industries signed a letter urging the president to stop banks from charging companies for access to customer financial data.
On Monday, Gemini co-founder Tyler Winklevoss wrote on X: "Banks want to weaken the open banking rule (1033) so they can tax and control your financial data and strip you of the freedom to choose the services you need. This is detrimental to cryptocurrency and financial innovation in America."
Tomorrow is the last day to submit comments to the CFPB regarding its proposed open banking rule.
Related: Coinbase writes to the U.S. government: Embracing blockchain technology is essential to effectively combat crypto crime
Original article: “Cryptocurrency and Fintech Groups Urge CFPB to Defend Open Banking Rules”
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