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Crypto and fintech groups are pushing regulators to protect consumers’ rights over their financial data.
A coalition of fintech, crypto, and banking groups, including the Blockchain Association, Crypto Council for Innovation, and Financial Technology Association submitted comments to the Consumer Financial Protection Bureau (CFPB) regarding the reconsideration of the Personal Financial Data Rights (PFDR) Rule under Section 1033 of the Dodd-Frank Act.
They expressed strong support for robust consumer financial data rights and urged the CFPB to finalize an open banking rule.
The rule would let consumers safely share their financial information with third-party services, enabling them to link bank accounts to crypto exchanges, stablecoin wallets, and other fintech apps.
Rights “Under Attack”
The groups highlighted that over over 100 million Americans use Open Banking to access tools that help manage their money and businesses, from digital payments and investment apps to crypto wallets and AI financial assistants. However, they warned that these rights are currently “under attack.”
“The nation’s largest banks want to roll back open banking, weaken consumer financial data sharing, and crush competition to protect their position in the marketplace,” they wrote. They argue that financial data fundamentally belongs to consumers, not the nation’s largest banks.
Key Actions Urged
The groups have specifically called for two key actions:
- Confirm that Americans can securely control and share their financial data with authorized third parties by maintaining a clear definition of a “representative.”
- Keep the ban on consumer data access fees to ensure a free and competitive market.
The groups also urged the CFPB to keep compliance timelines predictable and based on company size that prevents unnecessary delays.
Last year, the CFPB finalized a rule requiring banks and credit unions to share consumers’ data with them or authorized third parties. However, the Bank Policy Institute sued, arguing that the rule overreaches, risks privacy, and banks must protect customer data. The CFPB announced that it would reopen the rule.
Tyler Winklevoss Reacts
This sparked a reaction from Tyler Winklevoss, co-founder of Gemini. “Banks want to gut the Open Banking Rule (1033) so they can tax and control your financial data and remove your freedom to choose the services you want. This is bad for crypto and financial innovation in America,” he said.
The groups emphasized that a strong open banking rule is essential for a competitive and innovative financial ecosystem.
They noted that robust policies put the U.S. on par with leading economies like the U.K., Singapore, Brazil, India, Japan, Canada, and the EU, all of which protect consumers’ data rights.
But they warn that limiting these rights could threaten not only current financial progress but also American competitiveness and future innovation, especially in fast-moving areas like AI.
