Efforts to finalise national open banking rules are gaining traction in the United States as regulators, banks and fintech innovators debate how to balance consumer protection with financial freedom. At the heart of this conversation is Section 1033 of the Dodd-Frank Act, which enshrines consumers’ rights to access and share their own financial data.
Senator Cynthia Lummis of Wyoming, a key advocate for digital assets and financial innovation, has thrown her full support behind the Consumer Financial Protection Bureau’s (CFPB) open banking rule. She argues that empowering consumers to control their financial data can transform access to banking and digital services, particularly across rural America.
“Banks want to continue to have a monopoly over their most precious asset, your personal data,” Lummis said, underscoring the resistance from large financial institutions. Legal challenges filed by several major banks claim the CFPB’s rule exceeds its authority, but Lummis insists the move is vital to preserving fair competition and consumer choice in a rapidly evolving digital economy.
Open Banking and Consumer Data Rights: A Foundation for the Future
The CFPB’s open banking framework aims to make financial data more portable and interoperable, allowing consumers to authorise secure data sharing with third-party platforms such as PayPal, Venmo, or crypto exchanges. By giving individuals ownership over their financial data, the rule opens the door to a more competitive and innovative financial ecosystem.
Although the open banking concept began taking shape during the Trump administration, its finalisation under President Biden in 2024 has reignited debates about the role of regulators and big banks in controlling data flow. The CFPB maintains that the rule ensures fairness by defining who can access financial data and how it should be used.
The bureau has also pledged to ensure that the same consumer protections apply across both traditional banking and emerging digital platforms. With the explosive growth of digital financial services, CFPB officials emphasise the need to maintain innovation while safeguarding consumers from exploitation and risky lending practices.
Wyoming’s Model: Linking Rural Economies with Digital Assets
Wyoming’s proactive stance on blockchain and fintech regulation has positioned it as a national leader in digital finance policy. Since 2017, the state has enacted a series of blockchain-friendly laws designed to attract fintech companies and decentralised finance (DeFi) innovators. In 2024, Wyoming passed legislation specifically promoting open banking adoption among local banks, further enhancing its reputation as a fintech-friendly jurisdiction.
For Lummis, the connection between open banking and rural economic development is clear. She notes that residents in small towns or agricultural communities often face limited financial options. Open banking, she argues, can bridge that gap by giving them access to digital tools such as alternative credit scoring models, automated payment systems and better financial product comparisons.
A Wyoming rancher or small business owner, for instance, could securely connect their community bank account to platforms like PayPal or digital asset exchanges. This not only simplifies transactions but also provides access to innovative credit solutions that align with irregular or seasonal income patterns.
“Open banking gives farmers, ranchers and mom-and-pop shops the ability to manage cash flow, avoid late fees and enhance fraud detection, all from their phones or computers,” Lummis said.
Digital Assets and Fair Access: A Matter of Competition
Senator Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, warns that without open banking, consumers could face growing restrictions from traditional banks when trying to engage with crypto platforms such as Kraken or Gemini. Some banks, she claims, have already limited services to certain individuals and industries for political or ideological reasons.
In her letter to the CFPB, Lummis cited examples of account restrictions affecting groups ranging from churches and firearms manufacturers to digital asset firms and even former President Donald Trump. She argued that open banking ensures a level playing field where consumers, not corporations, decide how and where their money is used.
By enabling consumers to share their financial data with crypto exchanges and stablecoin issuers, open banking facilitates faster and cheaper payments. It also lays the groundwork for integrating digital assets into the broader financial system, a key step toward keeping the U.S. competitive in the global fintech race.
Lummis emphasised that regulatory clarity, rather than restrictive oversight, will attract responsible digital builders and innovators to operate within the U.S. “When consumers have freedom and entrepreneurs can fairly compete, we all win,” she said.
CFPB’s Balancing Act: Protecting Innovation While Ensuring Safety
The CFPB has reaffirmed its commitment to protecting innovation while ensuring consumers’ financial safety. The bureau’s stated goal is to strike a balance between promoting fintech growth and maintaining robust oversight. It has outlined measures to guarantee transparency in lending practices and to ensure consumers receive clear, comprehensible financial information.
By setting clear standards for third-party data access, the CFPB hopes to create a more inclusive and competitive market. This would empower consumers to choose financial products that best meet their needs, while encouraging smaller fintech and digital asset firms to compete with entrenched banking giants.
For Lummis and her allies, the CFPB’s open banking rule represents more than just a regulatory milestone; it is a statement about the future of American finance. In her view, allowing individuals to control their own data is key to unlocking the next wave of innovation, expanding digital asset adoption and ensuring economic opportunity reaches even the most remote corners of the country.
