The Consumer Financial Protection Bureau (CFPB) is preparing to reopen its finalised open banking rule, in a significant reversal under the Trump administration, according to Bloomberg Law. The move could delay or potentially vacate the Personal Financial Data Rights rule announced in October, which was designed to empower Americans to share financial data with third-party providers.
The change comes after strong pushback from traditional banks, which raised concerns about liability for data breaches, their ability to charge for data access, and the need to block firms that misuse customer data.
Whether the rule will be amended or entirely eliminated remains unclear. However, the announcement has sparked criticism from open banking advocates.
“Reopening this rulemaking means stalling financial innovation and prolonging uncertainty for both businesses and consumers in America,” said Steve Boms, CEO of FDATA North America.
The rule was already under fire from industry groups. Shortly after it was finalised, the Bank Policy Institute and Kentucky Bankers Association filed a lawsuit claiming the CFPB had overstepped its authority, arguing the burden of customer data protection falls entirely on banks, with little CFPB accountability.
The rollback is part of a broader shift in CFPB policy under acting Director Russell Vought, as the agency scales back oversight. In recent months, it has:
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Withdrawn an interpretive rule treating BNPL providers like credit card companies
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Dropped multiple lawsuits, including those against JPMorgan Chase, Bank of America, and Wells Fargo over fraud in the Zelle network
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Abandoned a proposed rule giving the CFPB oversight of tech giants like Apple, Google, and X in the digital payments space, after it was struck down by Congress
This shift suggests a marked retreat from previous pro-consumer stances and raises new questions about the future of open banking in the US.