A coalition of crypto and fintech organizations calls for strong data rights protections, warning that banks are trying to weaken the open banking framework and limit consumer control.
Crypto and Fintech Alliance Pushes for Stronger Data Rights
A coalition of crypto, fintech, and retail trade groups is pressing the U.S. Consumer Financial Protection Bureau (CFPB) to finalize an open banking rule that ensures consumers—not banks—maintain control over their financial data.
The joint letter, signed by major industry organizations including the Blockchain Association, the Crypto Council for Innovation, the Financial Technology Association, and the American Fintech Council, argues that open banking is essential for competition and innovation in digital finance.
“Americans should own their financial data, not the big banks,” the letter stated, urging regulators to preserve rules that prevent banks from charging data access fees. The groups emphasized that data-sharing rights empower consumers to freely connect with fintech apps, investment platforms, and crypto services.
Open Banking: A Key Bridge Between Traditional and Digital Finance
The open banking framework, first proposed in 2022 and finalized in October 2024, enables consumers to securely share financial information with authorized third parties via application programming interfaces (APIs). The system forms a bridge between traditional financial institutions and the decentralized finance (DeFi) ecosystem, allowing smoother integration for crypto wallets and digital payment tools.
According to the coalition, over 100 million Americans already rely on open banking to manage investments, run small businesses, and access financial services. “Yet these rights are under attack,” the letter warned, claiming that large U.S. banks are attempting to roll back reforms and limit competition through lawsuits and new data-access fees.
Banks Push Back as Crypto Industry Steps Up Pressure
The Bank Policy Institute, representing major institutions like JPMorgan Chase, Bank of America, and Wells Fargo, has challenged the rule in court, arguing that it raises cybersecurity and compliance risks. In July, reports surfaced that JPMorgan planned to charge fintech firms for access to customer data, sparking further criticism.
Crypto leaders say such moves threaten innovation. “Banks want to gut the Open Banking Rule (1033) so they can tax and control your financial data,” Gemini co-founder Tyler Winklevoss said on X.
As the CFPB prepares to finalize the rule, industry advocates stress that preserving open banking is critical for financial freedom, innovation, and competition—ensuring that Americans retain the right to decide where and how their data is used.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.