Crypto Groups Push CFPB for Strong Open Banking Rule

A powerful alliance of cryptocurrency advocacy groups, fintech organizations, and retail industry representatives has united to advocate for robust consumer data protections in the United States financial system. The coalition includes prominent crypto organizations such as the Blockchain Association and Crypto Council for Innovation, alongside established fintech trade groups including the Financial Technology Association and American Fintech Council. This diverse grouping represents a significant convergence of traditional and emerging financial sectors around the common goal of ensuring consumers maintain control over their financial data.

The coalition’s unified front demonstrates the growing importance of data portability across the entire financial ecosystem. By bringing together organizations from cryptocurrency, traditional fintech, and retail sectors, the alliance shows that consumer data rights transcend individual industry boundaries. This collaborative approach strengthens the argument that modern financial services require clear, consistent rules governing how consumers can access and share their financial information with third-party providers, whether they be cryptocurrency platforms, budgeting apps, or other financial technology services.

The coalition’s advocacy focuses specifically on the Consumer Financial Protection Bureau’s ongoing review of the Personal Financial Data Rights Rule under Section 1033 of the Dodd-Frank Act. This regulatory framework will establish the foundational rules governing how consumers share their financial data with third-party services. The rulemaking represents a pivotal moment for financial innovation in the United States, as it will determine whether consumers can easily transfer their financial information between service providers or remain locked into traditional banking relationships.

The Dodd-Frank Act’s Section 1033 provides the statutory authority for consumers to access their financial data, but the specific implementation details fall to the CFPB’s rulemaking process. This is why the coalition’s timing is crucial—they are engaging during the review period to ensure the final rule establishes strong, consumer-centric standards. The rule will define technical standards, security requirements, and liability frameworks that will shape how financial data flows between banks, consumers, and third-party service providers for years to come.

The push for strong open banking rules carries significant implications for competition and innovation in financial services. For cryptocurrency platforms and fintech applications, access to consumer financial data—with proper consent and security—is essential for developing innovative products that can compete with traditional banking services. Without clear rules ensuring data portability, new entrants face significant barriers to competing with established financial institutions that naturally control customer data.

Consumer control over financial data represents a fundamental shift from the current paradigm where financial institutions often act as gatekeepers. The coalition argues that putting consumers in charge of their data will foster greater competition by allowing them to easily switch between service providers and try new financial products. This is particularly important for cryptocurrency companies seeking to integrate with traditional financial systems and for fintech firms developing personalized financial management tools that require access to comprehensive financial data from multiple sources.

The outcome of the CFPB’s rulemaking will determine whether the United States embraces the open banking model that has driven innovation in other financial markets. By establishing clear standards for data sharing, the rule could unlock new opportunities for financial technology development while ensuring consumers maintain sovereignty over their financial information. The broad coalition supporting strong consumer data rights reflects the widespread recognition that modern financial services depend on secure, consumer-controlled data access.