BlockBeats News, October 21st, a group of U.S. crypto firms, fintech companies, and retail industry organizations are joining forces to defend open banking, warning in a joint letter that large banks’ attempts to charge for data access could sever the connection between the financial system and digital wallets and stablecoins.
An alliance of organizations including the Blockchain Association, the Crypto Innovation Alliance, the National Association of Convenience Stores, and the Retail Industry Leaders Association has written to the Consumer Financial Protection Bureau (CFPB), urging the regulatory agency to retain key protection provisions in the proposed “1033 Rule.” This rule would give consumers the right to freely share financial data with third-party service providers, enabling them to link their bank accounts with crypto exchanges, stablecoin wallets, and other fintech platforms.
The alliance points out that large banks are lobbying lawmakers to narrow the definition of “consumer-permissioned access” and introduce fees for data access. These changes would solidify the position of incumbents, weaken market competition, and sever the connection between cryptocurrency, digital wallets, and the U.S. banking system.
The joint letter emphasizes: “Robust open banking rules are crucial to building a competitively vibrant, innovation-rich financial services ecosystem. Many of the financial innovations used by Americans over the past decade have emerged in line with the policy expectations of the U.S.’s move towards an open banking regime.” While banks claim that open banking will increase their operating costs, the alliance argues that expenses such as cloud storage and technological infrastructure are standard operating costs for any modern bank globally. The alliance warns that weakening the “1033 Rule” will cause the U.S. to fall behind major economies such as the UK, Singapore, and Brazil, which have established open banking standards. “Strong open banking rules are key to America’s competitiveness,” the alliance urges the CFPB not to yield to the attempts by large banks to tax Americans’ financial data access rights in the final draft of the rule.”
