A coalition of organizations from fintech, crypto, and retail sectors is advocating for the US Consumer Financial Protection Bureau (CFPB) to finalize an open banking rule that guarantees consumer control over their financial data, rather than banks.

The letter shared highlights prominent crypto advocacy groups like the Blockchain Association and the Crypto Council for Innovation, along with other fintech organizations such as the Financial Technology Association and American Fintech Council. They emphasize the importance of the CFPB’s review regarding the Personal Financial Data Rights Rule outlined in the Dodd-Frank Act, which governs consumer data sharing with third-party services.

Joint trades comment letter. Source: Finance Technology Association

The coalition insists on establishing clear consumer data rights and calls for the CFPB to confirm that Americans retain ownership of their financial information. They argue for the freedom to share that information with any authorized third party, rather than limiting options to fiduciaries.

Additionally, they urge the retention of the current ban on data access fees to maintain a free and competitive market as established by law.

Open banking first emerged in the U.S. during Joe Biden’s administration in 2022, culminating in a finalized framework on October 22, 2024. This enables consumers to securely share their financial data with third-party applications via APIs, acting as a vital connection between traditional finance and innovative sectors like decentralized finance and digital banking.

The letter states that over 100 million Americans rely on open banking to utilize various financial tools, such as investment platforms, crypto wallets, and payment applications to manage finances and support businesses. However, it claims, “these rights are under attack” and that major banks seek to undermine open banking to maintain their market dominance.

Banks’ Opposition to Open Banking

While open banking adoption has succeeded in several countries, including the EU and the UK, there is significant resistance from U.S. banks. Notably, on the very day the rule was finalized in October 2024, a trade group representing major banks—including Wells Fargo, Bank of America, and JPMorgan Chase—initiated legal action to prevent its implementation, citing security concerns and undue burdens on established banks.

A report from Bloomberg revealed previous intentions by JPMorgan to charge fintech firms for access to customer banking data.

Increased Pressure from the Crypto Sector on Regulations

The recent letter builds upon a prior appeal made to Donald Trump on July 23, where the coalition accused U.S. banks of hindering innovation and imposing data access fees on fintech and crypto firms. In a concerted effort, more than 80 industry executives signed a letter on August 14 urging the President to avert bank-induced fees targeting companies accessing customer financial data.

Tyler Winklevoss, co-founder of Gemini, voiced on X: “Banks want to gut the Open Banking Rule (1033) so they can tax and control your financial data and remove your freedom to choose the services you want. This is detrimental to crypto and financial innovation in America.”

Tomorrow marks the final day to submit a comment letter to the CFPB surrounding the prospective open banking rule.