Financial and crypto associations are calling on the Trump administration to support the open banking rule, which is under threat from bank challenges.
Banks Challenge Open Banking Rule
The focus on the challenge to the open banking rule by large banks was highlighted by Phil Goldfeder, CEO of the American Fintech Council, who warned about the risks to access important financial tools for Americans as the deadline looms for government comments on July 29.
Fintech Startups Face Potential Struggles
The disputes surrounding the rule could hinder fintech startups' abilities to attract capital and develop their services. It may also restrict consumer access to fintech tools, impacting their financial operations. Increased bank influence could threaten user data control, emphasizing the need for government support.
Historical Legal Challenges in Fintech
In the past, similar bank attempts to challenge regulations have led to changes in fintech operations. Legal unpredictability can stall fintech growth due to high compliance costs. Current trends may lead to market disruptions resembling those seen historically, potentially impacting crypto project funding.
The call from financial and crypto associations to the Trump administration underscores the importance of protecting open banking, which could significantly affect the availability of financial tools and innovation in the sector.
