Overview

• On July 29, a federal judge granted the CFPB’s motion to stay legal challenges to its 2024 open banking rule
• The CFPB under acting director Russell Vought committed to an accelerated rulemaking process and aims to issue an advanced notice of proposed rulemaking within three weeks
• Banking groups including the Consumer Bankers Association hailed the move as an opportunity to address security and fee concerns, while consumer advocates warned it undermines bipartisan efforts to secure consumer data rights
• Fintech leaders, backed by the Financial Technology Association, expressed support for the expedited rewrite and pledged to engage in the stakeholder process to ensure clarity on data-sharing rights
• The overhaul follows market pressures such as JPMorgan Chase’s proposal to levy fees for third-party data access, underscoring tensions over consumer financial data control under Section 1033 of the Dodd-Frank Act