Author of the Opinion: Senator Cynthia Lummis
When people think of digital assets and financial innovation, they often think of Silicon Valley or Wall Street.
However, Wyoming's vast open spaces, unique economy, and remote communities provide compelling reasons for the importance of digital assets, fintech, and open banking.
In 2010, the U.S. Congress passed Section 1033 of the Dodd-Frank Act, requiring the Consumer Financial Protection Bureau (CFPB) to ensure that consumers can access and own their financial data.
The open banking portion of the law is a highlight.
For example, if a mother in Lander saves money at Big Horn Federal and wants to use services like Venmo or PayPal to send money to her college student child at the University of Wyoming, she would be able to grant that permission.
During President Donald Trump's first term, he initiated a process to establish clear rules that would make it easier for consumers to share their banking data—while ensuring appropriate security and disclosure—so they could easily use financial tools like Venmo and PayPal and utilize digital asset exchanges.
Open banking is also crucial for integrating digital assets into the U.S. economy, as it promotes competition and enables consumers to share data with digital asset exchanges and stablecoin issuers, facilitating faster and cheaper payments.
In 2024, the Wyoming legislature passed a law encouraging banks to promote open banking. This law follows dozens of digital asset and blockchain-related laws passed by the legislature since 2017, aimed at making Wyoming the preferred jurisdiction for digital asset companies, similar to what South Dakota did for credit cards and banking in the early 1980s.
In 2024, the Biden administration finalized open banking rules, which were immediately challenged in court by large banks claiming they exceeded statutory limits. The administration also threatened to impose hefty fees on digital asset platforms and fintech platforms like Venmo and PayPal to deter consumers from using them.
Banks want to continue monopolizing their most valuable asset—your personal data—and spread panic, claiming that no one else can be trusted with your information. This is pure protectionism.
Now is the time for us to adjust open banking rules to ensure that the U.S. maintains its global leadership in financial services.
Open banking provides financial services to rural communities through smartphones and computers. These tools make it easier to establish credit by using alternative scoring models that demonstrate timely payment ability through transaction banking or banking data.
Open banking supports small businesses and agricultural operations by providing better cash flow and credit channels. Ranchers, farmers, and mom-and-pop shops in Wyoming often rely on seasonal or irregular income. Fintech tools can offer more flexible payment, financing, and invoicing options that match cash flow, provided consumers can control their personal data to use these tools.
Open banking also provides third-party tools for the people of Wyoming, increasing choices and allowing them to compare financial products like loans, credit cards, and savings to get the best deals.
Open banking helps automate payments, reduce travel and postage costs, avoid late fees, and enhance budgeting and fraud detection capabilities.
Perhaps most importantly, without open banking, access to digital assets is very limited. Without open banking rules, it is impossible to connect existing bank accounts to preferred digital asset exchanges. Many leaders of large banks, such as Jamie Dimon, have clearly expressed their opposition to digital assets. Without clear open banking rules, they may block customers from connecting their accounts to platforms like Kraken and Gemini, completely stifling consumer choice.
Large banks have indicated that they will restrict access for political reasons, targeting industries and individuals they disagree with, including gun manufacturers, churches, and even President Trump himself.
The Consumer Financial Protection Bureau (CFPB) has the opportunity to protect innovation by establishing clear guidelines that empower consumers to control their data, broadly define consumers, and enable individuals to use the third-party tools they need (with appropriate authorization and disclosure) to access digital assets and financial tools, making their lives and financial futures easier to manage.
We cannot allow opponents of digital assets to rewrite the rules in their favor, stifle innovation, and increase costs. Setting barriers will drive entrepreneurs overseas and weaken the U.S. leadership in fintech.
America is the home of financial innovation, and digital assets are the next frontier. We should welcome responsible builders rather than burden them with excessive red tape.
When consumers have freedom and entrepreneurs can compete fairly, we all win.
Author of the Opinion: Senator Cynthia Lummis.
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This article is for general informational purposes only and is not intended to be legal or investment advice and should not be construed as such. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Original Article: Opinion: Open Banking Will Keep the U.S. at the Forefront of Financial Innovation
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