Washington Examiner
By Carrie Sheffield

Washington has a habit of producing policies that sound consumer-friendly but ultimately are the opposite. The Biden administration‘s approach to personal financial data is a prime example — and one that the Trump administration has the opportunity to correct.

At issue is a sweeping regulation finalized by former Consumer Financial Protection Bureau Director Rohit Chopra in October 2024, just weeks before President Donald Trump’s reelection. The rule sought to implement Section 1033 of the Dodd-Frank Act, a provision intended to give consumers access to their financial information. In practice, however, the CFPB’s interpretation went far beyond that goal.

Under the rule, banks, credit unions, and financial technology companies would be forced to share sensitive consumer financial data with third parties whenever requested, regardless of security risks, cost burdens, or meaningful consumer consent.

Data sharing can be beneficial when done responsibly. But mandated sharing without adequate safeguards puts privacy and security at risk, possibly exposing millions of Americans to fraud and misuse of their most sensitive information.