One official at a federal consumer protection agency is reportedly raising concerns over JPMorgan Chase’s plan to charge fintech fees for customers’ account data.

An unnamed politically appointed official with the Consumer Financial Protection Bureau (CFPB) believes the agency’s efforts to kill in court an open banking rule enacted under former US President Biden may be giving JPMorgan Chase the opportunity to charge the fees, reports Bloomberg.

The same official is discussing the issue with concerned fintech firms, according to multiple sources who asked to remain anonymous to talk about the controversial matter.

The CFPB open banking rule, which was finalized last year, prevents banks from imposing charges on third parties such as Coinbase, Venmo and PayPal to access customers’ deposit and credit card account information as a way to ensure competition.

However, CFPB’s Acting Director Russell Vought is now asking a federal judge to vacate the rule on several grounds, arguing that Section 1033 of the Dodd-Frank Act “does not authorize the Bureau to prohibit banks from charging any fees for maintaining and providing access through the required developer interfaces.”

Critics of JPMorgan Chase’s fee proposal say it could stifle the fintech sector.

Graham Steele, the former assistant Treasury secretary for financial institutions in the Biden administration, says the Trump administration’s efforts to shutter the CFPB and delete Biden-related policies are wreaking havoc in the fintech industry.

“By repealing the rule without fully thinking it through, they have caused a lot of problems in the marketplace and for consumers.”

The CFPB did not respond to the media’s request for comment at time of publication.

Meanwhile, JPMorgan CEO Jamie Dimon defended the fee proposal during the bank’s second-quarter earnings call.

“It just costs a lot of money to set up the APIs and stuff like that to run the system protection.”

Critics of the bank fees include cryptocurrency companies and investors.

Says Alex Rampell, a general partner at venture capital firm Andreessen Horowitz,

“Make no mistake: this isn’t about a new revenue stream. It’s about strangling competition. And if they get away with this, every bank will follow.”

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The Consumer Financial Protection Bureau (CFPB) will likely see a reduced role in crypto regulations as other federal agencies like the Securities and Exchange Commission (SEC) and state-level regulators assume a bigger role in crypto policy, according to Ethan Ostroff, partner at the Troutman Pepper Locke law firm.

“I think with the current administration, my sense is, we are highly likely to see a significant pullback by the CFPB in the context of the activity by other regulators,” Ostroff told Cointelegraph in an interview.

State regulators also have the authority under the Consumer Financial Protection Act (CFPA) to assume some of the regulatory roles of the CFPB, the attorney said but also added that some regulatory functions will continue to fall within the purview of the CFPB as a matter of established law.

Ostroff cited the New York Department of Financial Services (NYDFS) and the California Department of Financial Protection and Innovation (DFPI) as regulators to keep an eye on as potential leaders of crypto regulations at the state level.

However, the attorney clarified that while the CFPB may see a diminished role during the Trump administration, the agency would not be outright dismantled during the current regime due to “statutorily mandated obligations and requirements” that require acts of Congress to change.

Related: Elon Musk’s ‘government efficiency’ team turns its sights to SEC — Report

Trump administration targets CFPB in efficiency push

The Trump administration targeted the CFPB as part of a broader push by the Department of Government Efficiency (DOGE) to slash government spending and reduce the federal debt.

Russell Vought, the recently appointed head of the CFPB, announced major funding cuts to the agency and scaled back operations within days of assuming the helm at the CFPB in February 2025.

Massachusetts Senator Elizabeth Warren criticized Elon Musk for dismantling the CFPB, which the US senator co-founded back in 2007.

Warren characterized Musk as a “bank robber” and claimed that the Trump administration dismantled the CFPB to undo consumer protection rules and have greater control over the financial system.

In a February 12 interview with Mother Jones, the senator stressed that the Executive Branch of government does not have the statutory authority to fully dismantle the CFPB, which can only be done through Congressional approval.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

]]> https://earlybirdsinvest.com/cfpb-likely-to-step-back-from-crypto-regulation-attorney/feed/ 0 29366