US crypto and fintech groups urge Trump administration to defend CFPB's open banking rules

PANews reported on October 21st that according to CoinDesk, US cryptocurrency, fintech, and retail industry groups have formed a coalition to defend open banking policies. In a joint letter, they warned that attempts by large banks to charge for data access could sever the financial system's ties to digital wallets and stablecoins. Groups including the Blockchain Association, the Cryptocurrency Innovation Council, the National Association of Convenience Stores, and the National Retail Federation have written to the Consumer Financial Protection Bureau (CFPB) requesting that the regulator retain key protections in its pending Rule 1033. The rule would give consumers the right to freely share their financial data with third-party services, allowing them to connect their bank accounts to crypto exchanges, stablecoin wallets, and other fintech platforms.

The alliance stated that large banks are lobbying to narrow the eligibility criteria for consumer representatives and charge fees for data access; these changes would entrench the position of incumbent banks, weaken competition, and cut off cryptocurrencies and digital wallets from the US banking system. Although banks claim that open banking will increase their costs, the alliance believes that these costs are normal and expected for any modern bank in the world. The alliance also warned that weakening Rule 1033 could put the United States behind major economies that have implemented open banking frameworks, such as the United Kingdom and Singapore.