The U.S. Cryptocurrency Industry Alliance Writes to the CFPB, Opposing Big Banks' Data Access Fees

On October 21st, a consortium of U.S. crypto firms, fintech companies, and retail industry organizations is coming together to safeguard open banking. In a joint letter, they have issued a warning that the attempts by large banks to charge for data access could sever the link 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 sent a letter to the Consumer Financial Protection Bureau (CFPB), urging the regulatory agency to retain the key protection provisions in the proposed "1033 Rule". This rule would grant consumers the right to freely share their 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 impose fees for data access. These changes would strengthen 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 that "robust open banking rules are crucial for building a competitively vibrant and 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 shift 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 lag behind major economies like 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 give in to the attempts by large banks to tax Americans' financial data access rights in the final draft of the rule.