President Trump’s Administration Deemed Biden’s “Open Banking” Unlawful

It’s clear the Biden-era rule would have handed over vast amounts of sensitive banking data to various companies – many of which lack significant data protection protocols – through data middlemen eager to pad their pockets at the expense of consumers.

That’s why the Trump administration put a stop to it before it could harm consumers, and a federal court agreed. In fact, the court found that the Biden CFPB failed to consider the cumulative impact of the rule’s provisions on data security. The agency’s omission of a comprehensive risk assessment is a fundamental regulatory failure. The judge agreed that the rule’s requirements – forced sharing of sensitive data and no prohibition on risky practices like screen scraping – create significant security risks.

Their leadership sets a clear precedent: The interests of Main Street America must come before those of fintech and its lobbyists. It’s imperative that decisionmakers in Washington uphold this standard.

Consumers or Corporations?

The story Silicon Valley fintechs and their lobbyists are promoting is not just misleading, it is false. They want you to believe that without Biden’s “open banking” rule, consumers would be cut off from their platforms, blaming banks for supposedly trying to put them out of business for access to their secure infrastructure. This narrative is a smokescreen.  

As reported, fintechs have already made deals with the banks, yet fintechs are fighting to keep the rule as it is because they want their rein over vast amounts of private consumer financial data to be completely free to them and the ability to rake in profits hand over fist. While they point the finger at banks, data middlemen stand to gain the most – at the expense of consumer privacy and security.

President Trump Understands the Art of The Deal

Businesses don’t need government mandates to deliver for their customers. Under President Trump’s leadership, private industry is working together to address complex challenges – delivering innovation without compromising security. The proof? Nearly all of the major data aggregators have struck deals to pay for data access, which makes it much more secure.

Even with proof that free markets deliver results, Senator Elizabeth Warren continues advocating for government mandates and price controls that mirror fintech lobbying, favoring Silicon Valley billionaires over consumers. Her efforts to reinstate Biden’s “open banking” rule reflect a determination to impose heavy-handed regulations, despite the free market’s success in effectively serving consumers and businesses.

Consumer protections and common‑sense, free market solutions – not Silicon Valley’s self-serving data scheme – must guide today’s rulemaking.

Cutting Through Fintech’s Noise

Trump’s CFPB is reviewing thousands of public comments that overwhelmingly reject the tired fintech industry arguments that influenced the CFPB under the Biden administration. With an update to the Biden “open banking” rule expected soon, now is the moment to ensure every voice is heard.