What happened?
A coalition of crypto, fintech, and retail trade groups sent a joint letter to the CFPB urging it to defend Rule 1033 after big banks pushed to narrow who counts as a “consumer representative” and to add fees for data access. The groups warn those changes would limit consumers’ ability to share their financial data with digital wallets, fintech apps, and crypto exchanges. This fight follows the CFPB finalizing the rule, a lawsuit from the Bank Policy Institute, and a pause to reopen consultations.
Who does this affect?
Everyday consumers who want to connect their bank accounts to apps, wallets, or exchanges could face higher costs or blocked connections if open banking is weakened. Fintech startups and crypto firms that rely on easy data access to build products would be hurt, while large banks could benefit by keeping control of customer data. Regulators and the broader financial ecosystem are also affected because the decision will shape competition, privacy, and data control across the market.
Why does this matter?
Weakening open banking risks slowing innovation and reducing competition in payments, wallets, and crypto services, which can raise costs and reduce choice for consumers. It could also make the U.S. fall behind global fintech leaders like the UK, Singapore, and Brazil that have stronger open banking frameworks. For markets and investors, that means slower fintech growth, fewer startups scaling, and more capital concentrating with big banks instead of funding new entrants and products.