Deseret News
By: Sean Reyes

Our personal financial data is one of our most valuable assets. Utahns treat it that way, and so do the responsible businesses that serve them. Yet under the previous administration, that information was placed at unnecessary risk. In a state where finance, technology, innovation and entrepreneurship continue to expand, safeguarding data isn’t optional; it is foundational to consumer confidence and to the companies that depend upon it.

The Consumer Financial Protection Bureau’s (CFPB’s) Section 1033 “open banking” rule was advertised by the Biden administration and many fintech players as a step toward modern financial services. It was anything but. The mandate required banks to provide consumers’ financial data to “data middlemen” free of charge and with no control over how often that information could be pulled or what it could be used for. That kind of compulsory data transfer ignored the risks facing consumers and imposed one-sided obligations on banks while insulating these middlemen from meaningful accountability.

Earlier this year, the Trump administration halted the rule and a federal judge agreed that implementation should be put on hold. Importantly, the court noted the CFPB failed to assess risks to data security or the consequences for consumers. For Utah families and for businesses relying on predictable regulatory frameworks, that decision restored a measure of clarity.