Senator Lummis Urges CFPB to Finalize Rules Preventing Banks from Blocking Crypto

US Senator Cynthia Lummis, representing Wyoming, has called on the Consumer Financial Protection Bureau (CFPB) to finalize its open banking rules. The senator sent an open letter to the CFPB acting director, Russ Vought.

The pro-crypto Senator who chairs the Digital Assets Subcommittee warned that big banks could block access for crypto and fintech entities.

Lummis Says Open Banking Rules Will Favor Crypto Industry

According to Lummis, the CFPB needs to finalize the open banking rules as soon as possible. The rules allow consumers to share their financial data with third-party platforms through APIs.

While the CFPB had initially finalized the rules in 2024, it has paused on implementation due to challenges against it. Advocacy groups for banks, such as the Kentucky Bankers Association and Bank Policy Institute, filed a lawsuit against the rule.

They claimed that it does not provide for proper oversight of the third parties with whom that data would be shared. According to groups, this could increase the risk of fraud and force banks to give free access to their systems.

Although the court has paused the lawsuit to allow the CFPB to reconsider the rule, many people are now calling for the agency to finalize it. Lummis noted that open banking is essential for integrating digital assets into the economy.

She wrote:

She added that access to digital assets would be limited without open banking, citing how several banks do not support crypto. According to her, the lack of open banking rules could allow these big banks to prevent consumers from connecting their accounts to crypto exchanges.

The letter noted:

Thus, the Senator wants the CFPB to step in and establish clear guidelines that will give consumers control over their data. She emphasized how this is necessary for digital assets to thrive in the country.

Banks and Crypto Clash on Open Banking

Meanwhile, Lummis’ letter joins the growing list of calls by crypto stakeholders for open banking rules; earlier this week, a coalition of crypto and fintech groups also wrote to the CFPB.

The group included the Blockchain Association, the Financial Technology Association, and the National Retail Federation. They all called on CFPB to implement the open banking rules, noting that big banks cannot dictate the future.

In their letter, they claimed that more than 100 million Americans rely on open banking to gain access to third-party apps. The coalition had also sent a letter to President Donald Trump in July, accusing major banks of stifling innovation and competition.

Many executives in the crypto sector have also championed the cause. Over 80 fintech and crypto executives even wrote to Trump in August to ban banks from imposing fees on access to customers’ data. This followed reports that JP Morgan will start charging fees from third-party apps accessing customers’ data.

However, advocacy groups for banks such as the American Bankers Association (ABA) criticized the move. ABA claimed that the request undermines free markets. Crypto and traditional banking have been clashing on various policy issues, including yield-bearing stablecoins.