A coalition of crypto, fintech and retail trade groups has urged President Donald Trump to take a strong position on defending the open banking framework of the nation, warning that legal challenges threaten the data rights of the consumer and the innovation agenda of the administration could withdraw.
In a July 23 letterThe Financial Technology Association, Blockchain Association, Crypto Council for Innovation, and various national retail groups said that large banks try to “relax” under the leadership of Trump by imposing high data access costs and challenging the open bank rule in court.
The groups claim that these actions can limit Americans to use digital portfolios, payment apps and investment platforms that depend on safe bank connectivity.
The Open Banking Rule, completed during Trump’s first term, laid a legal basis for consumers to link their financial data for free to services of third parties.
It also stated strict security and privacy standards aimed at balancing the interests of fintech companies and banks, while the United States is positioned as a world leader in financial technology. However, the largest American banks brought lawsuits on the day the rule was completed, and tried to block its implementation.
The trade groups argued that banks use legal uncertainty to maintain their dominance and slow innovation, which disadvantages smaller competitors and emerging digital activa companies.
The letter emphasizes that the next critical moment in the legal battle is July 29, when the administration has to submit his letter in the current case.
The signatories urge the government to explicitly confirm that financial data belongs to consumers who must be free to share it with fintech or crypto services of their choice, without extra costs or limitations.
The appeal comes when the US is confronted with growing competition from overseas markets that aggressively open bank standards and blockchain-driven financial services.
The coalition warned that weakening the rights of consumer data could eradicate the leadership of the nation in Fintech and innovation of digital assets.
The letter was signed by 11 organizations, including the Chamber of Progress, the Digital Chamber, the Financial Data and Technology Association and large retail groups such as 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 companies that depend on modern, affordable financial services.
