Washington, D.C. – July 30, 2025 – The Consumer Financial Protection Bureau (CFPB) announced it will substantially revise the Biden-era 2024 open banking rule, which had drawn legal challenges from major banking associations. In a federal court filing, the agency stated it will initiate an accelerated rulemaking process, issuing a revised draft within three weeks.
This development led U.S. District Judge Danny Reeves to stay proceedings in an ongoing lawsuit filed by the Bank Policy Institute, Kentucky Bankers Association, and Forcht Bank, who argue the rule overstepped CFPB authority—particularly around its prohibition of data access fees.
The rule, rooted in Section 1033 of the Dodd-Frank Act, was initially intended to empower consumers with full access and control over their financial data. However, tensions between banks and fintechs escalated following JPMorgan Chase’s introduction of new data access fees, which fintech advocates argue threatens innovation and consumer choice.
While banks resisted delaying the litigation, fintech groups like the Financial Technology Association (FTA) welcomed the CFPB’s decision and pledged to engage in the revised rulemaking. The American Fintech Council also voiced support for a balanced framework that protects both innovation and consumer rights.
The CFPB clarified its goal is to align with new leadership’s policy priorities and correct deficiencies in the initial rule. The revised version is expected to reflect deeper stakeholder engagement, regulatory clarity, and updated market dynamics.
