Fintech Groups Urge Trump’s Protection of Open Banking

The American Fintech Council and other leading associations urge President Trump to defend the Consumer Financial Protection Bureau’s open banking rule amidst pressure from banks. This rule was initially finalised in October 2024.

Involved groups highlight the importance of consumers having control over their financial data. Large banks like JPMorgan are reportedly imposing additional fees, affecting fintech and crypto sectors.

Financial and crypto sectors face potential increases in operational costs due to new fees from banks on data access. Stablecoins and DeFi apps may experience higher costs and reduced on-chain liquidity.

Phil Goldfeder from the American Fintech Council emphasizes the need for consumer data protection, stating it as crucial for maintaining a competitive marketplace. The deadline for Trump’s intervention is July 29, 2025.

“Safeguarding consumers’ rights to their financial data is fundamental to preserving a fair and competitive marketplace. 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.”

Similar legal disputes occurred over screen scraping practices in the early 2010s. These prompted regulatory actions like the current Section 1033, mirroring Europe’s PSD2 open banking laws.

Future outcomes may involve more restrictions on data access or increased litigation costs. Previous patterns indicate potential prolonged standoffs between financial institutions and regulatory bodies.