US Cryptocurrency Union warns that bank data fees could block stablecoins and wallets

A coalition of US crypto, fintech and retail groups has united to defend open banking, warning in a letter that attempts by big banks to charge for data access could sever the connection between the financial system and digital wallets and stablecoins.

Groups including the Blockchain Association, Crypto Council for Innovation, National Association of Convenience Stores, and National Retail Federation sent a letter to the Consumer Financial Protection Bureau (CFPB) urging the regulator to maintain important protections in the disputed Rule 1033.

The rules will give consumers the right to freely share their financial data with third-party services, allowing them to connect their bank accounts to crypto exchanges, stablecoin wallets and other fintech platforms.

The coalition said it was lobbying for big banks to narrow down who is eligible to represent consumers and impose fees on data access. The group said such changes would lock in incumbent companies, weaken competition and sever the link between cryptocurrencies and digital wallets and the U.S. banking system.

“Strong open banking rules are critical to a competitive, prosperous and innovative financial services ecosystem,” the letter said. “Over the past decade, many of the financial innovations that Americans take advantage of today were developed with the policy certainty that America was moving toward an open banking system.”

Banks claim that open banking will increase costs, but the coalition argued that these costs, such as cloud storage and technology infrastructure, are routine and expected in modern banks around the world.

The coalition warned that weakening Rule 1033 could leave the US behind other major economies such as the UK, Singapore and Brazil, where open banking frameworks are already the norm.

“Strong open banking rules keep America competitive,” the group wrote, urging the CFPB to finalize Rule 1033 “without giving in to big banks’ attempts to tax Americans’ access to their own financial data.”