Fintech and Crypto Groups Urge Trump to Defend Open Banking Rules Against Bank Challenges

Fintech and crypto industry representatives have escalated their efforts to influence U.S. financial policy by urging Donald Trump to defend open banking rules, which face legal challenges from major banks. A coalition of trade groups, including the Blockchain Association, Crypto Council for Innovation, and Financial Technology Association, sent a letter on July 23 calling on Trump’s administration to intervene in a court case challenging the 2024 finalized open banking rule. The rule grants consumers the right to share their financial data across platforms, a critical enabler for stablecoins, DeFi applications, and crypto on-ramps [1]. The letter argues that large banks, including JPMorgan Chase and Wells Fargo, are undermining innovation by imposing data fees on fintech and crypto apps while suing to block the rule’s implementation [1].

The dispute centers on the banks’ recent actions to restrict third-party access to customer data. JPMorgan, for example, announced plans to charge fintech firms for accessing customers’ account data, with higher fees for payments-related use cases [1]. The coalition contends that such practices centralize control over financial data, violating core principles of free markets and personal liberty. “Financial data belongs to the American people, not the banks,” the letter emphasizes, urging the administration to file a legal brief by July 29 supporting consumers’ rights to share data freely [1].

Open banking, which allows customers to securely share data with third-party apps via APIs, has been a global trend in markets like the UK and EU. The U.S. rule finalized in October 2024 was designed to establish “commonsense standards” for secure data sharing while fostering innovation. However, the Bank Policy Institute, representing major banks, has sued to block the rule, citing security risks and unfair burdens on incumbents [1]. Critics argue the legal pushback reflects banks’ efforts to protect their dominance rather than address genuine security concerns.

Meanwhile, banks have quietly expanded into crypto despite opposing open banking. In May 2024, JPMorgan and Mastercard participated in a tokenization pilot for instant settlements using blockchain technology. JPMorgan also recently filed for a trademark for “JPMD,” a blockchain-based stablecoin for institutional settlements, signaling a broader strategy to enter the digital asset space [1]. This duality—fighting open banking while embracing crypto—highlights the tension between preserving legacy systems and adapting to technological shifts.

Trump’s position on the issue adds political complexity. A vocal crypto supporter, Trump has framed crypto as a tool to “make the United States the crypto capital of the world.” His campaign’s engagement with fintech and crypto groups suggests a strategic effort to align with their interests, even as his past criticisms of Bitcoin as a “fraud” reveal an inconsistent stance [1]. The coalition’s letter seeks to leverage this ambiguity, positioning open banking as a core component of U.S. financial innovation.

Analysts caution that the outcome could reshape the industry. If banks succeed in weakening open banking rules, it may accelerate adoption of blockchain-based alternatives, as consumers and businesses seek decentralized solutions. Conversely, stronger regulatory support for banks could slow DeFi and stablecoin growth. “The next administration’s approach to open banking will determine whether the U.S. remains a global leader in financial innovation or cedes ground to more progressive markets,” a financial regulatory expert noted [1].

The lobbying battle underscores the growing political power of crypto and fintech lobbies. With billions at stake in emerging financial technologies, these groups are increasingly mobilizing to sway policymakers, mirroring the influence of traditional banking interests. As the legal and regulatory landscape evolves, the balance between innovation and institutional control will remain a defining issue in U.S. financial policy.

Source: [1] [Cointelegraph - Fintech Groups Press Trump on Open Banking](https://cointelegraph.com/news/fintech-groups-trump-open-banking-banks-crypto)