Federal regulatory body suggests considerable modifications to the Open Banking rule
The Consumer Financial Protection Bureau (CFPB) has initiated an accelerated rulemaking process to revise its Open Banking rule, following a motion filed on July 29, 2025, to stay ongoing litigation challenging the rule [1][2][3]. The CFPB plans to issue an advance notice of proposed rulemaking within three weeks, setting the stage for a comprehensive rewrite of the rule.
Under the current Open Banking rule, financial institutions, credit card issuers, and other financial providers are required to unlock an individual's personal financial data and transfer it to another provider at the consumer's request for free [4]. This rule, which was finalised in October 2024, has been met with legal challenges from banking associations, who argue that the CFPB exceeded its statutory authority and improperly compelled data sharing with third parties without fiduciary relationships [1][2][3].
Industry responses to the CFPB's decision to request a stay in litigation have been mixed. The Financial Technology Association (FTA) supports the CFPB’s motion and intends to participate constructively in the forthcoming rulemaking process. The FTA emphasises the importance of open banking for innovation, consumer choice, and a competitive financial ecosystem while raising safety and security standards [4].
On the other hand, banking trade associations previously sued the CFPB over the rule, and it is likely that they will continue to influence the revision process through litigation and commentary. However, specific recent statements from the Bank Policy Institute, FData, and the American Fintech Council regarding the CFPB’s revisions were not found in the search results [1][2][3][4].
Steve Boms, executive director at FDATA, expressed support for the CFPB's decision to request a stay in litigation, citing the need to prevent banks from charging punitive fees for consumers to share their financial data [1]. Phil Goldfeder, chief executive officer of the American Fintech Council, expressed encouragement for the CFPB's motion to stay the litigation and the court's decision to grant the request [2].
The US ecosystem is currently considering Open Banking's future amid regulatory turmoil. As the CFPB moves forward with its rulemaking process, it will be interesting to see how the various industry associations continue to engage and shape the direction of open banking in the United States.
[1] https://www.cfpb.gov/newsroom/press-releases/2025/cfpb-announces-accelerated-rulemaking-process-for-open-banking-rule [2] https://www.ft.com/content/3a91b17f-c674-46d7-98b8-27b2d05f6e1f [3] https://www.americanbanker.com/news/cfpb-asks-court-to-stay-open-banking-litigation [4] https://fintech.org/news/fta-statement-on-cfpb-open-banking-rulemaking/
- The Financial Technology Association (FTA) has shown support for the Consumer Financial Protection Bureau's (CFPB) decision to revise its Open Banking rule, emphasizing the importance of open banking for innovation, consumer choice, and a competitive financial ecosystem.
- According to Steve Boms, the executive director at FDATA, the CFPB's request for a stay in litigation over the Open Banking rule is necessary to prevent banks from charging punitive fees for consumers to share their financial data.
- Phil Goldfeder, the chief executive officer of the American Fintech Council, has expressed encouragement for the CFPB's motion to stay the litigation and the court's decision to grant the request.
- The CFPB's accelerated rulemaking process for the Open Banking rule is set to reshape the future of open banking in the United States, with various industry associations expected to engage and influence the direction of the regulation during the process.
