Crypto and fintech groups urge Trump administration to defend CFPB’s open banking rule

Crypto and fintech groups urge Trump administration to defend CFPB’s open banking rule

Cryptocurrency and fintech advocacy groups are calling on the White House to support the Consumer Financial Protection Bureau’s (CFPB) open banking rule, arguing that efforts to overturn it would undermine consumer empowerment. In a joint letter sent Tuesday to the CFPB, the Blockchain Association, Crypto Council for Innovation, and Financial Technology Association emphasized that protecting consumers’ access to and control over their financial data is essential for a fair, modern financial system.

The groups warned that the rule faces growing opposition from industry interests seeking to preserve outdated systems. They stressed that weakening the measure would not only reduce competition but also limit innovation in digital finance. According to the letter, ensuring the rule’s implementation is critical to maintaining transparency, accountability, and consumer choice in the evolving financial ecosystem.

What is the CFPB open banking rule?

The CFPB finalized its Personal Financial Data Rights (Section 1033) rule in 2024 to require banks, credit unions, and other providers to make consumer data available upon request to consumers and authorized third parties, with privacy and security standards for access and use. The rule is designed to improve portability and competition across financial services.

Why crypto and fintech groups are weighing in

In their letter, the groups argue that open banking preserves the “fundamental principle that financial data belongs to the American people, not the nation’s largest banks,” and warn that limiting data access would impede innovation, including in AI-driven finance. The message follows earlier fintech appeals this summer urging President Trump to uphold open banking and prevent new bank data-access fees.

Banks’ concerns and the lawsuit

The Bank Policy Institute (BPI) and other banking groups sued the CFPB in federal court, asserting the agency exceeded its authority and jeopardized consumer privacy with the 2024 rule. Banks say they have a duty to protect customers and warn of security risks from third-party access.

Where the rule stands now

In July 2025, the CFPB moved to reexamine the Biden-era rule and sought to pause litigation; the court subsequently stayed proceedings. In August, the Bureau issued an advance notice of proposed rulemaking (ANPR) to reconsider aspects of the framework. Some reports indicate the agency plans a substantially revised version. Federal Register+2Consumer Financial Protection Bureau+2

The CFPB open banking rule timeline (key dates)

• Oct. 22, 2024
  CFPB finalizes the Personal Financial Data Rights rule.

• Oct. 22, 2024
  Banking groups sue to block the rule.

• Jul. 29, 2025
  Court stays proceedings as CFPB signals reopening.

• Aug. 22, 2025
  CFPB issues ANPR to reconsider provisions.

Industry voices and public reaction

Advocates say robust open banking aligns the U.S. with regimes in the UK, EU, Brazil, India, Canada, Japan, and Singapore that enshrine consumer data mobility. Tyler Winklevoss, co-founder of Gemini, criticized efforts to “gut” Rule 1033 in a post on X, calling it harmful to crypto and innovation.

Timeline of the CFPB open banking rule and next steps

With the rule reopened, stakeholders are preparing fresh comments that could reshape standards around access, security, and liability allocation between data holders and third parties. Market participants expect clarity on fees for data access, consent frameworks, and timelines for compliance once a revised rule is proposed.

implications for competition and consumers

If data access remains free, secure, and portable, third-party apps can more easily switch or aggregate accounts, potentially lowering costs and improving choice. Conversely, higher access barriers or uncertain liability could consolidate power among incumbents and large aggregators. Regulatory clarity on fees, consent, and cybersecurity baselines will shape market dynamics.

Conclusion

The letter marks a unified effort by crypto and fintech organizations to keep the U.S. committed to data portability as the CFPB reconsiders its open banking rule. These groups aim to ensure that consumers retain the ability to easily access and share their financial information across platforms.

The outcome of this debate will shape how seamlessly Americans can move their data between institutions and which companies can compete to offer better financial services. Industry advocates argue that preserving portability is key to promoting innovation, expanding consumer choice, and driving a more competitive and transparent financial marketplace.

FAQs

Q : What is the CFPB open banking rule?

A : It’s the CFPB’s Personal Financial Data Rights (Section 1033) framework requiring institutions to make consumer data available to consumers and authorized third parties with privacy and security safeguards.

Q : Why are banks challenging it?

A : They argue the rule risks privacy and security and exceeds CFPB authority; litigation was filed after finalization.

Q : What happens next with the rule?

A : The CFPB reopened the rulemaking in 2025; proceedings are stayed while it collects input for revisions.

Q : How could this affect crypto and fintech?

A : Easier data portability can aid competition and innovation in financial apps, including crypto-adjacent services.

Q : Which groups support the rule?

A : The Blockchain Association, Crypto Council for Innovation, Financial Technology Association, and others signed the latest letter.

Q : What did supporters say in the letter?

A : They said consumer financial data belongs to Americans, not large banks, and warned limiting access would harm competitiveness.

Q : How can I comment on the rule?

A : Submit a public comment via the Federal Register or Regulations.gov during the open period.

Facts

• Event
  Crypto and fintech groups urge administration to defend CFPB’s open banking rule

• Date/Time
  2025-10-21T12:00:00+05:00

• Entities
  Consumer Financial Protection Bureau (CFPB); Bank Policy Institute (BPI); Blockchain Association; Crypto Council for Innovation; Financial Technology Association; President Donald J. Trump (administration)

• Figures
  Rule finalized Oct. 22, 2024; court stay granted Jul. 29, 2025; ANPR issued Aug. 22, 2025

• Quotes
  “fundamental principle that financial data belongs to the American people, not the nation’s largest banks.” — Industry letter; “Banks want to gut the Open Banking Rule (1033)…” Tyler Winklevoss

• Sources
  CFPB final rule explainer + newsroom; BPI litigation posts; coalition coverage (The Block; Cointelegraph). Cointelegraph+4Consumer Financial Protection Bureau+4Consumer Financial Protection Bureau+4