The American Crypto Industry Alliance wrote to the CFPB, opposing big banks charging for data access

ChainCatcher News: Multiple U.S. crypto institutions, fintech companies, and retail industry organizations are joining forces to defend open banking. In a joint letter, they warn 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 Council, the National Association of Convenience Stores, and the National Retail Federation, has written to the Consumer Financial Protection Bureau (CFPB), urging the regulator to retain key protective provisions in the proposed "Rule 1033." This rule would grant consumers the right to freely share their financial data with third-party service providers, enabling them to connect their bank accounts with crypto exchanges, stablecoin wallets, and other fintech platforms.

The alliance points out that large banks are lobbying legislators to narrow the definition of "consumer representatives" and introduce data access fees. These changes would entrench the position of vested interests, weaken market competition, and sever the connection between cryptocurrencies, digital wallets, and the U.S. banking system.

The joint letter emphasizes: "Robust open banking rules are crucial for building a competitive, orderly, and innovative financial services ecosystem. Many financial innovations used by Americans over the past decade have emerged from the policy expectations surrounding the U.S. transition to an open banking system." Although banks claim that open banking will increase their operational costs, the alliance counters that expenses such as cloud storage and technological infrastructure are already routine operational costs for any modern bank globally.

The alliance warns that weakening Rule 1033 would cause the U.S. to fall behind major economies like the UK, Singapore, and Brazil, which have established open banking standards. "Strong open banking rules are key for the U.S. to remain competitive," the alliance urges the CFPB in the letter, stating that it "should not succumb to large banks' attempts to tax Americans' access to their financial data" when finalizing the rule.