A coalition of Crypto, Fintech and retail groups have urged President Donald Trump to take a firm stance on defending the country’s open banking framework, warning that legal challenges by major banks could threaten consumer data rights and derail the administration’s innovation agenda.
In a letter on July 23, the Financial Technology Association, Blockchain Association, Crypto Innovation Council and several national retail groups said that large banks are trying to “make progress” under Trump’s leadership by leviing high data access fees and challenging open banking rules in court.
The group argues that these actions can limit Americans’ use of investment platforms that rely on digital wallets, payment apps and secure banking connections.
Open banking rules, which were finalized during Trump’s first period, established a legal basis for consumers to link financial data to third-party services for free.
It also set strict security and privacy standards aimed at positioning the United States as a global leader in financial technology, while balancing the profits of fintech companies and banks. However, the largest US bank filed a lawsuit on the day the rules were finalized to try to block its implementation.
The trade group claimed that banks are leveraging regulatory uncertainty to maintain control and innovation, putting small competitors and emerging digital asset companies at a disadvantage.
The letter emphasizes that the next important time in the legal battle will be July 29th.
Signatories are urging the government to explicitly assert that financial data belongs to consumers. Consumers are required to freely choose FinTech or Crypto Services at no additional costs or restrictions.
This appeal is due to the increasing competition from overseas markets where the US is actively adopting open banking standards and blockchain-powered financial services.
The coalition warned that weakening consumer data rights could erode national leadership in fintech and digital assets innovation.
The letter was signed by 11 organizations, including the Chamber of Commerce of Progress, Digital Chambers, Financial Data and Technology Association, and major retail groups such as the National Association of Convenience Stores, National Restaurant Association, and National Retail Federation.
Together, these trade groups represent tens of millions of consumers and businesses relying on modern, affordable financial services.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
