RealClear Markets
By: Vance Ginn

The Consumer Financial Protection Bureau’s (CFPB) Section 1033 “open banking” rule—driven by President Biden’s former CFPB Director Rohit Chopra—hasn’t been vacated yet. But growing criticism from across the financial landscape is a clear signal: this top-down mandate threatens to do more harm than good.

Crypto champions, fintech advocates, and some government officials have framed this rule as vital for innovation. But that’s simply not true—and it’s not grounded in sound thinking. The Chopra rule isn’t about expanding consumer control. It’s about centralizing government control over how financial data moves—setting a dangerous precedent that weakens privacy, distorts competition, and politicizes the future of banking.

Let’s be clear: consumer access to financial data is a good thing. But the market already delivers it. Banks and fintechs have developed secure, voluntary APIs that let consumers connect budgeting apps, crypto platforms, and online lenders to their accounts. These systems didn’t arise because of government pressure—they exist because of consumer demand. Biden’s CFPB stepped in not to fix a broken market, but to replace it with their preferred market.