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

Partner offers
The Block may may earn a commission if you use our partner offers, at no extra cost to you.

Quick Take

  • The Consumer Financial Protection Bureau finalized a rule last year requiring banks, credit unions, and others to make available consumers’ data.
  • In the letter on Tuesday, crypto and fintech groups said the open banking rule is needed to preserve the “fundamental principle that financial data belongs to the American people, not the nation’s largest banks.”

Cryptocurrency and fintech advocacy groups are pressing the Trump administration to back a contentious open banking rule that holds sway over consumers' ability to share their financial data.

The Blockchain Association, Crypto Council for Innovation, and the Financial Technology Association, among others, warned that consumer financial data rights are "under attack," while criticizing banks' pushback, in a letter sent Tuesday to the Consumer Financial Protection Bureau.

"The nation’s largest banks want to roll back open banking, weaken consumer financial data sharing, and crush competition to protect their position in the marketplace," they said in the letter.

The CFPB, which aims to ensure consumers are treated fairly by banks and other financial institutions, finalized a rule last year requiring banks, credit unions, and others to make available consumers' data "upon request to consumers and authorized third parties." The Bank Policy Institute, which represents the country's top banks, sued the CFPB, arguing that the agency overstepped and said the rule "jeopardizes consumers’ privacy" and said banks have a responsibility to protect consumers.

The Financial Technology Association pushed back, and in July of this year, the CFPB said it planned to reopen the rule, pausing litigation.

In Tuesday's letter, the groups said the open banking rule is needed to preserve the "fundamental principle that financial data belongs to the American people, not the nation’s largest banks." They warned that not having open banking policies would harm competitiveness.

"Strong open banking policies put us on par with leading economies, including the United Kingdom, Singapore, Brazil, India, Japan, Canada, and the European Union, which all safeguard consumers’ rights to their data," they said in the letter. "If we limit that right, we risk not just today’s financial progress, but American competitiveness and the future of innovation, particularly in fast-moving spaces like artificial intelligence."

The issue has also garnered a reaction from Gemini co-founder Tyler Winklevoss.

"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," Winklevoss said on Monday in a post on X. "This is bad for crypto and financial innovation in America."

Comments are due Tuesday on the rule.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

TAGS
CFPB

AUTHOR

Sarah is a reporter at The Block covering policy, regulation and legal happenings. Before, Sarah was a reporter with CQ Legal writing about securities regulation, which is where she first started reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri and earned a degree in print and digital journalism. Sarah is based in Washington D.C., and is an avid coffee lover. You can follow her on Twitter @ForTheWynn.

See More
Connect on

Editor

To contact the editor of this story: Jason Shubnell at [email protected]

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on