Overview

• The U.S. District Court for the Eastern District of Kentucky granted the CFPB’s motion to stay a lawsuit challenging the October 2024 open banking rule and ordered joint status reports every 45 days and within seven days of final agency action.
• Under Acting Director Russell Vought, the CFPB initiated an expedited rulemaking process and plans to issue an advanced notice of proposed rulemaking for Section 1033 within three weeks.
• The original rule mandated free, consent-based sharing of consumer financial data with authorized third parties and imposed strict security and privacy safeguards.
• Bloomberg reported that the CFPB’s reversal followed JPMorgan Chase’s proposal to impose fees on third-party data access, which raised competition and consumer cost concerns.
• Banking groups praised the decision to review the rule over privacy and authority issues, while consumer advocates and fintech associations warned that vacating it creates market uncertainty and stressed the need for strong data rights.