A coalition of crypto, fintech, and retail trade groups has urged President Donald Trump to take a firm stance in defending the nation’s open banking framework, warning that legal challenges by major banks threaten consumer data rights and could derail the administration’s innovation agenda.
In a July 23 letter, the Financial Technology Association, Blockchain Association, Crypto Council for Innovation, and several national retail groups said that big banks are attempting to “unwind progress” made under Trump’s leadership by imposing high data access fees and challenging the open banking rule in court.
The groups claim that these actions could restrict Americans from using digital wallets, payment apps, and investing platforms that rely on secure bank connectivity.
The open banking rule, finalized during Trump’s first term, established a legal foundation for consumers to link their financial data to third-party services free of charge.
It also set stringent security and privacy standards aimed at balancing the interests of fintech companies and banks while positioning the United States as a global leader in financial technology. However, the largest U.S. banks filed lawsuits on the day the rule was finalized, seeking to block its implementation.
The trade groups argued that banks are exploiting regulatory uncertainty to preserve their dominance and slow innovation, putting smaller competitors and emerging digital asset firms at a disadvantage.
The letter emphasizes that the next critical juncture in the legal battle is July 29, when the administration must file its brief in the ongoing case.
The signatories are urging the government to explicitly affirm that financial data belongs to consumers, who should be free to share it with fintech or crypto services of their choosing, without additional costs or restrictions.
The appeal comes as the U.S. faces growing competition from overseas markets that are aggressively adopting open banking standards and blockchain-powered financial services.
The coalition warned that weakening consumer data rights could erode the nation’s leadership in fintech and digital asset innovation.
The letter was signed by 11 organizations, including the Chamber of Progress, the Digital Chamber, the Financial Data and Technology Association, and major retail groups like the National Association of Convenience Stores, the National Restaurant Association, and the National Retail Federation.
Together, these trade groups represent tens of millions of consumers and businesses relying on modern, affordable financial services.
Mentioned in this article
Credit: Source link