Financial Technology Association addresses the proposal by Consumer Financial Protection Bureau to amend the Open Banking regulation
In the ever-evolving landscape of digital finance, the Financial Technology Association (FTA) has taken a stand in support of the Open Banking rule, which was finalized in October 2024 under the Biden administration. The rule, intended to promote consumer control over financial data and facilitate easier switching between financial service providers, has faced legal challenges and is currently undergoing revision by the Consumer Financial Protection Bureau (CFPB).
The FTA, involved in the litigation as an intervenor defending the original rule, remains part of this evolving process. On June 29, the FTA filed a motion for summary judgment in the Open Banking case, reiterating its belief in the rule's lawfulness and its importance to innovation, competition, and choice.
The CFPB's decision to reopen and substantially revise the open banking rule reflects recognition of significant legal concerns and marketplace developments. The Bureau aims to produce a rule with stronger legal grounding and clearer protections. The court granted the CFPB's motion to stay the litigation, requiring status updates every 45 to 90 days as the CFPB proceeds with the new rulemaking.
The FTA, however, does not oppose the CFPB's motion to stay this litigation. In a statement, Penny Lee, president and chief executive officer of the Financial Technology Association, emphasized the importance of upholding Open Banking. She stated that Open Banking is foundational to innovation, consumer choice, and a robust and competitive ecosystem for financial services.
The FTA's coalition statement also underscored the importance of upholding Open Banking amidst anti-competitive moves from some of the nation's biggest banks. Last week, the FTA led a coalition of fintech, crypto, and Main Street business trades, urging President Trump to uphold Open Banking in the face of such challenges.
Open Banking and Americans' financial data rights remain vital to today's digital economy, according to the FTA. The rule, if properly implemented, would raise the bar for safety and security across the ecosystem, according to Lee. The FTA intends to participate in the rulemaking process in good faith, aiming to achieve a solution that upholds consumers' fundamental right to their financial information.
The revised rulemaking effort and the ongoing litigation are likely to shape the regulatory landscape for open banking in the U.S. over the coming months. As the CFPB works towards producing a revised rule, the FTA will continue to advocate for a lawful and consumer-friendly Open Banking framework.
[1] CFPB Filing: https://files.consumerfinance.gov/f/documents/cfpb_cfpb-2025-0030_stay-motion-filed-july-29-2025.pdf [2] FTA Motion for Summary Judgment: https://files.consumerfinance.gov/f/documents/cfpb_cfpb-2025-0030_fta-summary-judgment-motion.pdf [3] CFPB Press Release: https://www.consumerfinance.gov/about-us/newsroom/cfpb-announces-accelerated-rulemaking-process-for-open-banking-rule/ [4] FTA Press Release: https://www.fintech.org/press-releases/financial-technology-association-statement-on-cfpbs-filing-to-reopen-and-revise-the-open-banking-rule/
- Despite legal challenges, the Financial Technology Association (FTA) remains committed to the Open Banking rule, believing it to be crucial for innovation, competition, and consumer choice in the digital finance landscape.
- The Consumer Financial Protection Bureau (CFPB) has recognized significant legal concerns and marketplace developments, intending to produce a revised Open Banking rule with stronger legal grounding and clearer protections.
- The FTA, involved in the litigation as an intervenor, filed a motion for summary judgment, reaffirming the rule's lawfulness and importance to ensuring safety and security across the financial services ecosystem.
- The FTA, in a coalition with fintech, crypto, and Main Street business trades, has urged policymakers to uphold Open Banking amidst potential anti-competitive moves from large banks, emphasizing its significance for American's financial data rights in today's digital economy.
- As the CFPB works on a revised rule and the litigation continues, the FTA plans to actively participate in the rulemaking process to achieve a lawful and consumer-friendly Open Banking framework that upholds consumers' fundamental right to their financial information.
