U.S. Financial Groups Advocate for Open Banking Amid Concerns Over Data Access Fees

According to BlockBeats, several U.S. cryptocurrency institutions, fintech companies, and retail organizations are collaborating to defend open banking practices. In a joint letter, they warned that large banks' attempts to impose fees on data access could sever connections between the financial system and digital wallets, as well as stablecoins. The coalition, which includes the Blockchain Association, Crypto Innovation Council, National Association of Convenience Stores, and National Retail Federation, has addressed the Consumer Financial Protection Bureau (CFPB). They urged the regulatory body to retain essential protective clauses in the proposed Rule 1033. This rule would grant consumers the right to freely share financial data with third-party service providers, enabling them to link bank accounts with crypto exchanges, stablecoin wallets, and other fintech platforms. The coalition highlighted that large banks are lobbying to narrow the definition of "consumer representatives" and introduce data access fees. These changes would reinforce the position of vested interests, weaken market competition, and disrupt the connection between cryptocurrencies, digital wallets, and the U.S. banking system. The joint letter emphasized, "Robust open banking rules are crucial for building a competitive and innovative financial services ecosystem. Many financial innovations used by Americans over the past decade have emerged from the anticipation of the U.S. moving towards an open banking system." Although banks claim that open banking will increase their operational costs, the coalition countered that expenses such as cloud storage and technological infrastructure are standard operational costs for any modern bank globally. The coalition warned that weakening Rule 1033 would cause the U.S. to lag behind major economies like the UK, Singapore, and Brazil, which have established open banking standards. "Strong open banking rules are key to maintaining U.S. competitiveness," the coalition urged the CFPB not to yield to large banks' attempts to tax Americans' access to financial data in the final draft.