- Several blockchain associations and trade groups have sent a letter to President Donald Trump, requesting the return of the Open Banking Rule, which allows consumers free access to their financial data.
- Big banks are trying to block the rule via litigation, intending to facilitate restrictions that will culminate in debanking.
- The groups urge the Trump administration to file a brief in the lawsuit before the next hearing, which should take place on July 29.
Several American blockchain groups and trade associations have written to President Donald Trump, urging him to uphold the Open Banking Rule, which enables consumers to freely access and use their financial information. The rule is currently being challenged in court, courtesy of Wall Street giants, with the next critical hearing set for July 29.
Blockchain Coalitions, Commerce Groups Solicit Trump’s Defence Of Open Banking Rule
The rule, also known as the Section 1033 open banking rule, was initiated during Trump’s first term to ensure “consumers’ ability to securely control and share their financial data to access the services of their choice, a foundational right in today’s digital age,” and finalized in 2024.
However, despite the rule’s bipartisan support, the banking policy institute, a research and advocacy group representing America’s top banks, challenged the rule in court just after it was finalized—a move which could end up rescinding the rule if the government does not intervene.
The letter highlighted the Trump administration’s consistent stance on “innovation, competition, and individual freedom,” principles that have long sustained American greatness.
It also eulogized the President’s drive towards digital financial technologies and his efforts towards implementing proper legislation to usher the nation’s financial innovation into its golden era. It pointed out the critical issue of the Open Banking Rule, which could significantly roll back the administration’s innovative agenda.
Financial Innovation Under Threat Amid Banks’ Move To Kill Open Banking Rule
According to the letter, the progress of the “innovation economy” is under threat by America’s biggest banks, which are taking “aggressive action” to undo the Trump administration’s progress within only six months in office, by “moving to charge exorbitant fees for access to fintech and crypto apps.”
“The heart of this issue,” said the letter, “is the open banking rule initiated during your first term.” “This rule safeguards Americans’ right to securely connect their bank accounts to the apps and services of their choice – whether it’s a digital asset wallet, a payment app, or an investing tool.”
The letter raises alarm over the “debanking” implications of the lawsuit, which could shield Americans from modern financial services. By trying to protect their competitive edge, these big banks also seek to block the future of fintech, digital assets, financial innovation, and global leadership.
“By challenging open banking, the largest banks stand in direct opposition to your vision of making America the financial innovation capital of the world,” said the letter.
The groups have called on Trump to act decisively in the interest of open banking and right the wrongs of these big financial institutions. In summary, they want the administration to file a brief before the next hearing on July 29, testifying that consumers, not big banks, should control and share their financial data to whomever they choose, and at no fees.
