In a strongly worded letter to the Consumer Financial Protection Bureau (CFPB), a coalition of trade associations urged the regulator to finalize a rule guaranteeing that individuals – not banks – control their own financial data.
The appeal was co-signed by the Blockchain Association, the Crypto Council for Innovation, and several fintech advocacy groups including the Financial Technology Association and American Fintech Council. Their message: open banking should empower consumers, not protect legacy financial institutions.
A Fight Over Who Owns the Data
The debate centers on the Personal Financial Data Rights Rule, part of the Dodd-Frank Act’s Section 1033, which defines how consumers can share their financial information with third-party services. The coalition wants the CFPB to enshrine a simple principle into law – that Americans have the right to freely share their data with any authorized platform, from banking apps to crypto wallets.
The letter also demanded that the ban on data-access fees remain in place, calling such charges an “attack on competition.” According to the signatories, any attempt by banks to charge fintech firms for connecting through APIs would “punish innovation and restrict consumer choice.”
More than 100 million Americans already use open banking-powered services to trade, save, and make payments. But those same users, the coalition says, now face an industry push to reverse progress. “Major banks are attempting to roll back open banking to preserve their dominance,” the letter warned.
Big Banks Resist as the CFPB Moves Forward
Open banking – finalized in October 2024 after first being proposed in 2022 – is designed to let consumers securely share account data through standardized APIs, a model that has thrived in the U.K., Brazil, and the EU.
In the U.S., however, the banking lobby has fiercely resisted the change. On the very day the rule was finalized, the Bank Policy Institute, representing Wells Fargo, JPMorgan Chase, and Bank of America, filed a lawsuit claiming the rule exposed banks to cyber risks and unfair compliance costs.
That pushback hasn’t stopped there. Earlier this year, a Bloomberg report revealed that JPMorgan planned to begin charging fintech companies for data access – an approach the coalition argues directly contradicts the CFPB’s open banking vision.
Crypto Industry Rallies Against Financial Gatekeeping
The letter to the CFPB is part of a broader campaign by digital asset advocates to counter what they describe as “bank-engineered obstruction.” Over the summer, fintech and crypto executives also appealed directly to President Donald Trump, warning that U.S. banks were deliberately delaying reforms and introducing data-access fees to stifle innovation.
By August, more than 80 executives from leading crypto and fintech firms had signed a second letter urging the White House to stop banks from charging companies for data access. Among the most vocal supporters was Gemini co-founder Tyler Winklevoss, who warned 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 bad for crypto and financial innovation in America.
Now is your chance to speak up by submitting a comment letter (link…
The Final Countdown for Public Input
The CFPB’s review period for the rule is nearing its end, with Wednesday marking the final day for public comment. Once finalized, the open banking framework will define how the next generation of digital finance operates – bridging traditional banking systems with decentralized finance (DeFi), crypto trading apps, and AI-powered financial tools.
The stakes are high: if regulators yield to bank pressure, fintech firms warn that the U.S. could fall behind global peers in data innovation. If the rule holds firm, it could reshape financial access for millions of Americans – cementing open banking as a cornerstone of both the fintech and crypto revolutions.
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