Fintech crypto groups urge Trump to defend open banking rules as banks litigate impose data fees

A coalition of fintech, crypto, and retail trade groups has escalated pressure on Donald Trump, urging his administration to defend open banking rules amid aggressive legal and financial maneuvers by major banks. The letter, sent on July 23 by organizations including the Blockchain Association and the Financial Technology Association, alleges that banks are stifling innovation by litigating against open banking regulations and imposing restrictive data fees on fintech and crypto platforms. The groups argue that financial data ownership lies with consumers, a principle central to free markets and personal liberty [1].

The dispute centers on the U.S. open banking rule finalized in October 2024, which empowers consumers to share financial data with third-party apps via APIs. This framework is critical for services like stablecoin wallets, decentralized finance (DeFi) platforms, and crypto on-ramps. However, banks—including JPMorgan Chase, Wells Fargo, and Bank of America—challenged the rule in court shortly after its implementation, citing security risks and unfair burdens on incumbents [1]. Meanwhile, JPMorgan has reportedly begun charging fintechs for access to customer bank data, with fees escalating for payment-related services [1].

The coalition’s letter demands the Trump administration intervene by July 29, seeking a legal brief to affirm consumer ownership of financial data and ensure free access to third-party apps. The outcome could redefine how Americans interact with financial services, determining whether they can seamlessly connect bank accounts to crypto exchanges and digital wallets [1]. Open banking is already operational in the UK, Brazil, and the EU, but the U.S. debate highlights tensions between legacy institutions and emerging technologies.

The conflict intensifies as traditional banks deepen their crypto ventures. In May 2024, Mastercard and major U.S. banks participated in a tokenization pilot for instant settlements. JPMorgan also recently applied for a blockchain-based stablecoin, “JPMD,” signaling a strategic pivot toward digital assets [1]. Yet these banks simultaneously resist crypto firms seeking national bank charters—a regulatory move they argue undermines oversight. The American Bankers Association has lobbied regulators to adopt a “risk-based” approach, emphasizing consumer protection and systemic stability [2].

President Trump’s pro-crypto stance adds another layer to the debate. His administration has positioned the U.S. as a global crypto leader, with Trump claiming the sector contributed to his election victory. During a July 18 event, he declared efforts to make the U.S. the “crypto capital of the world.” The coalition now hopes his influence will counteract banking interests, securing open banking’s survival as a catalyst for financial innovation [1].

The battle underscores broader sectoral divides. Proponents view open banking as a pro-consumer, market-driven tool, while banks warn of unregulated expansion risks. With regulators weighing in on crypto charters and data access, the outcome will likely shape the future of financial services. For crypto firms, success could unlock broader banking integration; for traditional institutions, it may necessitate strategic adaptations to compete in a digital-first era [1].

Source:

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

[2] [Banking Dive - Bank Trade Groups Push Back on Crypto Firms' Bank Charter Pursuit](https://www.bankingdive.com/topic/regulations-policy/)