Fintech Coalition Demands Regulatory Action As JPMorgan's Data Fees Exceed 75 Of Plaid's Revenue

A coalition of ten financial technology and cryptocurrency trade groups has escalated pressure on JPMorgan Chase, urging regulatory intervention over its proposed data access fees, which they argue threaten the growth of open banking ecosystems and stablecoins like USDC. The groups, including the Blockchain Association and the Crypto Innovation Committee, formally appealed to President Trump on July 24 to address what they describe as “anti-competitive pricing strategies” that could stifle innovation and reduce market competition [1]. The appeal coincides with a legal battle over the Consumer Financial Protection Bureau’s (CFPB) open banking rules, which guarantee consumers unrestricted access to their banking data but face challenges from major banks seeking to block the regulations [1].

JPMorgan’s proposed fees—reportedly up to $300 million annually for Plaid, a data aggregator, alone—have raised alarms. These charges, which could exceed 75% of Plaid’s revenue, represent a significant shift from historical practices where banks provided data access without cost [1]. The trade associations warn that such fees could disenfranchise millions of Americans from their bank accounts and impede the growth of stablecoins, which rely on seamless integration with traditional banking systems. For instance, USDC, a dollar-backed stablecoin issued by Circle, has been adopted for cross-border settlements and decentralized finance (DeFi) protocols, yet its scalability may be constrained if infrastructure providers like JPMorgan impose restrictive terms [3].

The debate underscores a broader tension between legacy financial institutions and emerging digital ecosystems. Data aggregators like Plaid and MX facilitate fund transfers to platforms such as Coinbase and Kraken by leveraging consumer-authorized banking data. However, JPMorgan’s fee structure—rumored to include per-transaction charges and subscription models—could disproportionately burden smaller players reliant on stablecoins like USDC and USDT [1]. An anonymous fintech executive noted, “If access to core data becomes a tollbooth for innovation, the entire premise of open banking falters” [1]. This sentiment aligns with recent efforts by payment giants like Visa and Mastercard to integrate stablecoin settlements into their networks, reflecting growing recognition of the sector’s potential [2].

Critics highlight the technical and economic implications of restricted data access. High costs for real-time balance tracking or transaction verification could deter developers from building decentralized payment applications, slowing advancements in services like instant cross-chain transfers. Circle’s recently launched Gateway platform, which enables cross-chain USDC access across blockchains like Avalanche and Ethereum, exemplifies the type of innovation at risk [3]. Meanwhile, the American Access to Banking Act, proposed by the U.S. House of Representatives, seeks to enforce fair competition by mandating “reasonable and non-discriminatory” data sharing practices [4]. However, defining “reasonable” fees remains contentious, particularly in uncharted digital asset markets.

The dispute also carries international ramifications. The European Union’s Markets in Crypto-Assets (MICA) regulation, set to take effect in 2026, mandates open access to stablecoin data for institutional investors [5]. If U.S. providers adopt similar barriers, they could undermine global efforts to standardize digital asset infrastructure. A European fintech association representative noted, “It’s about whether open banking principles can survive in an era where legacy systems still hold the keys to innovation” [1].

Circle’s upcoming IPO filing, targeting a $5.65 billion valuation, further underscores the stakes. The company’s strategy hinges on positioning itself as a transparent infrastructure layer for digital money, yet its success may depend on navigating regulatory and commercial pressures from dominant banking players [6]. As fintech advocates prepare for a potential regulatory showdown, the outcome could reshape the balance of power between legacy institutions and emerging financial ecosystems.

Source:

[1] [Fintech Associations Urge Action Against JPMorgan's Data Fees](https://www.binance.com/en/square/post/27370099010954)

[2] [Visa & Mastercard, Designing Next-Gen Payment Systems](https://4pillars.io/en/issues/visa-mastercard-designing-next-gen-payment-systems)

[3] [Circle Launches Gateway for Cross-Chain USDC Access](https://m.economictimes.com/crypto-news-today-live-22-jul-2025/liveblog/122821149.cms)

[4] [American Access to Banking Act](https://live.house.gov/)

[5] [Day-Trading Restraints to Be Loosened Under Proposed Rule Change](https://johnlothiannews.com/day-trading-restraints-to-be-loosened-under-proposed-rule-change/)

[6] [Circle's IPO Aimed at Becoming Digital Money's Infrastructure](https://www.pymnts.com/news/ipo/2025/circle-ipo-goals-hinge-becoming-digital-money-infrastructure-layer/)