TL;DR
- Leading crypto and fintech organizations, including the Blockchain Association and Crypto Council for Innovation, are urging the US government to defend consumer control over financial data.
- The coalition warns that major banks are attempting to roll back open banking and introduce fees that could stifle competition.
- Advocates emphasize that strong open banking policies are critical for innovation, financial inclusion, and maintaining the US’s global competitiveness in technology-driven finance.
A coalition of cryptocurrency and fintech groups is pressing the Trump administration to uphold the Consumer Financial Protection Bureau’s (CFPB) open banking rule, arguing that it is essential for protecting Americans’ control over their financial data. The coalition includes the Blockchain Association, Crypto Council for Innovation, the Financial Technology Association, and other industry and retail organizations.
Banks Attempt To Restrict Consumer Data Access
The groups’ concerns come as major banks continue efforts to weaken the rule. The Bank Policy Institute, representing Wells Fargo, Bank of America, and JPMorgan Chase, filed a lawsuit to block the CFPB’s rule, claiming it imposes security risks and regulatory burdens. JPMorgan reportedly plans to charge fintech companies for accessing customer data, a move the coalition sees as an attempt to limit competition and preserve bank dominance. Analysts note that such actions could slow adoption of innovative services, including decentralized finance and blockchain-based payment solutions, across the US.
Crypto And Fintech Push For Strong Open Banking
The coalition’s letter emphasizes that open banking empowers over 100 million Americans to use tools like crypto wallets, digital payment apps, and investment platforms. Advocates argue that the rule, first finalized in October 2024, is critical for innovation in sectors such as DeFi, AI-driven finance, and digital banking. They also warn that failing to protect open banking could damage US competitiveness compared to countries like the UK, Brazil, Singapore, and the EU, which enforce robust consumer data rights. By enabling seamless integration between traditional finance and emerging digital solutions, open banking can drive broader financial inclusion and accelerate technological adoption nationwide.
Tyler Winklevoss, co-founder of Gemini, highlighted the risks of bank interference, stating that banks aim to “tax and control financial data and limit consumer choice”. The coalition’s appeal to the Trump administration underscores the urgency of defending open banking policies, with comments on the proposed rule still being accepted by the CFPB.
The outcome of this debate could shape how Americans access and share financial information, directly influencing competition, innovation, and the integration of crypto and fintech services into mainstream finance.
