Fintech crypto groups urge Trump to defend open banking rules as banks challenge free data access

Ten fintech and crypto trade associations have escalated a legal and regulatory battle over open banking rules by urging President Donald Trump to intervene, warning that major banks’ challenges threaten financial innovation and consumer access to tools like stablecoins and decentralized finance (DeFi) platforms [1]. The groups, including the Financial Technology Association, American Fintech Council, and Blockchain Association, argue that large banks are using litigation and data fees to undermine a 2024 rule finalized under the Biden administration [2]. This rule, set to take effect for major banks in mid-2026, mandates secure API-based data-sharing standards, allowing consumers to control and share financial data with third-party providers at no cost.

The dispute centers on the Consumer Financial Protection Bureau’s (CFPB) alignment with banks’ legal arguments, which claim the rule exceeds the agency’s authority and seeks court approval to void it [3]. The fintech coalition has criticized this stance as contradictory to Trump’s past support for open banking reforms, noting the rule’s origins in his first term. A July 19 letter to Trump emphasized the need for federal defense of the policy, citing risks to financial innovation and the broader adoption of digital assets. The groups also highlighted concerns over “debanking” scenarios, where banks could restrict access to next-generation financial services through litigation or fees [4].

JPMorgan Chase, a key opponent, has sued to block the rule and announced data access charges for aggregators, set to begin in September for some firms. CEO Bill Demchak defended these fees as necessary to cover data security costs, though no other banks have mirrored this move. The fintech groups counter that such fees would shift control of financial data from consumers to institutions, undermining the rule’s core purpose. Phil Goldfeder, CEO of the American Fintech Council, described the situation as a “pivotal moment” for open banking, stressing that allowing banks to impose fees could stifle competition and innovation [1].

The legal battle’s outcome carries broader implications for fintech startups, which rely on the rule to access funding and scale operations. Historical challenges to similar regulations have caused compliance costs and operational stalls, with analysts warning of potential market disruptions if the current litigation continues [3]. The coalition also linked the dispute to the Genius Act’s recent passage, which establishes a stablecoin oversight framework, arguing that resolving open banking’s legal uncertainty is critical to maintaining policy coherence for digital assets.

The CFPB faces a July 29 court deadline to respond to the Financial Technology Association’s intervention in the litigation. The fintech and crypto groups have framed the case as a test of whether the U.S. will uphold consumer-driven financial innovation or allow entrenched institutions to dominate. With Trump’s social media company having invested $2 billion in digital currencies, the coalition has positioned the open banking rule as integral to protecting the future of financial technology [4].

Source:

[1] [Crypto and fintech groups urge Trump to defend open banking rules, warning of threats to wallets and stablecoins](https://cointelegraph.com/news/fintech-groups-trump-open-banking-banks-crypto)

[2] [Financial technology firms and merchants ask Trump to intervene with the CFPB over open banking litigation](https://www.paymentsdive.com/news/groups-seek-trump-aid-on-open-banking-CFPB-banks-lawsuit/753916/)

[3] [Crypto groups plead for Trump to stop JPMorgan's scheme to impose fees on open banking](https://www.mitrade.com/insights/news/live-news/article-3-984421-20250724)

[4] [JPMorgan’s data fees and the broader implications for fintech and crypto innovation](https://www.thestreet.com/crypto/innovation/trump-urged-taxing-open-banking-fees-levied-by-jp-morgan)