Fintech, Crypto Groups Urge Trump to Protect Open Banking
- Fintech, crypto groups ask Trump to defend open banking rule.
- Banks’ challenge may limit financial tool access.
- Potentially impacts fintech startups’ operations and funding.
U.S. Banks Challenge CFPB’s Open Banking Rule
Phil Goldfeder, CEO of AFC, highlighted risks to financial tools critical for Americans. Regulatory support remains crucial as the government’s July 29 brief deadline looms.
“Efforts by these large, incumbent banks to undermine the open banking rule could limit the availability of financial tools that tens of millions of Americans rely on every day. We are proud to join other leading industry voices in urging the Administration to stand with consumers, small businesses and innovators to defend this rule in court.” — Phil Goldfeder, CEO, American Fintech Council
Fintech Startups Face Potential Struggles
The dispute could hinder fintech startups’ capabilities and capital attraction, affecting the fintech and crypto sectors severely. Consumers might see a restriction on fintech tools, impacting financial operations.
AFC’s effort emphasizes protecting consumer data control against big banks’ influence. The potential implications include decreased innovation and market accessibility, emphasized in official statements.
Historical Legal Challenges in Fintech
Similar bank-led challenges to previous regulations have caused shifts in fintech operations. Legal uncertainty, as seen over recent years, tends to stall fintech expansions due to compliance costs.
If current trends continue, potential market disruptions could mirror historical patterns, with an accentuated drop in crypto project funding and financial stability issues for startups.
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