TLDR
- Crypto and fintech groups urged the Trump administration to support the CFPB’s open banking rule.
- The coalition comprises the Blockchain Association, the Crypto Council for Innovation, and the Financial Technology Association.
- These groups aim to enable consumers to control and securely share their financial data with authorized third parties.
- They strongly oppose any efforts by large banks to weaken open banking and limit consumer data rights.
- The groups demanded a clear definition of representatives to ensure secure data sharing.
Crypto and fintech leaders are urging the Trump administration to uphold the CFPB’s open banking rule without delay. These industry groups submitted detailed comments in support of consumer rights and demanded action against efforts to weaken the rule. They emphasize that finalizing a strong rule will secure data control, protect innovation, and ensure financial competitiveness.
Coalition Defends Open Banking Rule and Data Control
Crypto and fintech organizations have voiced support for Section 1033 of the Dodd-Frank Act, which is currently under review by the CFPB. These groups include the Blockchain Association, Crypto Council for Innovation, and Financial Technology Association. They emphasized that the open banking rule provides consumers with secure control over their financial data.
These coalitions warned that large banks aim to reverse progress by restricting data sharing and reducing competition. “The nation’s largest banks want to roll back open banking,” the groups stated in their official submission. They argue that data belongs to consumers, not financial institutions.
They also warned that removing access limits tools for digital finance, including AI apps, stablecoin wallets, and crypto exchanges. Over 100 million Americans already use open banking through fintech platforms, they highlighted. They believe weakening access could halt U.S. financial innovation and harm the economy.
Crypto and Fintech Push for Consumer Rights and Market Access
Crypto and fintech leaders stressed two main demands for safeguarding the financial data rights of Americans. First, they requested that regulators maintain a clear definition of a “representative” for secure data sharing with third parties. Second, they urged the CFPB to keep the ban on access fees to ensure open and fair markets.
They also requested that the agency establish predictable timelines based on company size to prevent unnecessary implementation delays. These crypto and fintech firms argue that a stable rollout schedule is essential for smaller startups and growing platforms. They believe that flexible compliance enhances service quality and fosters competition.
Furthermore, they warned that undermining the rule would block users from choosing apps freely in today’s expanding fintech ecosystem. These tools include budgeting apps, crypto wallets, digital payment systems, and robo-advisors. The industry urges the Trump administration to resist any rollback efforts from major banking lobbies.
Industry Warns Against U.S. Falling Behind Global Competitors
Crypto and fintech groups warned that weakening data rights would damage American innovation and reduce global competitiveness. They compared U.S. efforts to policies in the U.K., Brazil, India, Singapore, Japan, Canada, and the EU. All these nations have already implemented strong open banking frameworks.
They argue that strong U.S. regulation will align with global standards and enable domestic fintech companies to compete globally. Without this, they say, the American fintech and crypto industries may face unnecessary setbacks and investment loss. They emphasize that open banking supports fair competition and empowers financial freedom.
Gemini co-founder Tyler Winklevoss joined the criticism, saying banks want to “control your financial data” and restrict fintech options. Industry voices see this as a battle between innovation and legacy institutions. The coalition now awaits a clear signal from the Trump administration on protecting the CFPB rule.
