Crypto sector pressures Trump administration to support open banking rules

• Crypto groups advocate for CFPB open banking rule
• Associations warn of risks to competitiveness and innovation
• Banks try to block measure that expands access to data

Cryptocurrency and fintech sector entities have stepped up pressure on the Trump administration, urging support for the open banking rule approved by the Consumer Financial Protection Bureau (CFPB). The rule, finalized last year, requires banks, credit unions, and financial institutions to make consumer data available upon request by consumers or authorized third parties.

In a letter sent Tuesday, the Blockchain Association, the Crypto Council for Innovation, and the Financial Technology Association stated that consumers' financial data rights are "under attack." The organizations harshly criticized large banks, accusing them of trying to weaken the rule to maintain control over information and reduce competition in the sector.

"The nation's largest banks want to roll back open banking, weaken the sharing of consumers' financial data, and crush competition to protect their market position," the groups wrote in the letter sent to the CFPB.

The Bank Policy Institute, which represents major American banking institutions, filed a lawsuit against the CFPB, claiming the rule exceeds the agency's authority and threatens consumer privacy. The group argues that banks have a responsibility to protect their customers' financial information, and that open banking could expose sensitive data to cyber risks.

Fintech and crypto sector representatives responded that the policy is essential to preserving the "fundamental principle that financial data belongs to the American people, not the country's largest banks." The letter highlighted that robust open banking policies put the United States on par with economies like the United Kingdom, Brazil, Singapore, India, and the European Union, which have already made progress in protecting the right to data sharing.

“If we limit this right, we jeopardize not only current financial progress, but also American competitiveness and the future of innovation, especially in rapidly evolving areas like artificial intelligence,”

the groups stated.

Tyler Winklevoss, co-founder of the Gemini exchange, also reacted : “Banks want to kill the Open Banking Rule (1033) so they can tax and control your financial data and remove your freedom to choose the services you want.”

The CFPB is expected to receive public comments on the rule by Tuesday, ahead of a possible reopening of the regulatory debate.