CFPB Sends Open Banking Rewrite To White House, Moving Closer To Release
By CU Today Staff —
WASHINGTON—The Consumer Financial Protection Bureau has taken a major step toward rewriting its controversial open banking rule, submitting a proposed overhaul of the Biden-era regulation to the White House's Office of Information and Regulatory Affairs (OIRA) for review before publication, Bloomberg Tax reported.
The move signals the agency is nearing release of a formal proposal that could significantly reshape how financial institutions share consumer-authorized data.
According to Bloomberg Tax, the proposal would allow banks to charge fees to fintech companies for accessing customer deposit and credit card account information after a yet-to-be-determined number of data requests, marking a significant departure from the 2024 rule that generally required covered institutions to provide such access without charge. OIRA review is typically the final step before a proposed rule is published for public comment.
The rewrite follows the CFPB's August 2025 advance notice of proposed rulemaking seeking input on reconsidering key aspects of the Personal Financial Data Rights rule issued under Section 1033 of the Dodd-Frank Act. Among the issues the Bureau identified for reconsideration were whether data providers should be permitted to recover costs through fees, who may act as a consumer's authorized representative, and how best to address data security and privacy risks.
The Biden Administration finalized the Section 1033 rule in October 2024, requiring banks, credit unions and other financial providers to make covered consumer financial data available electronically to consumers and authorized third parties. The rule was hailed by fintech firms as a catalyst for competition but drew criticism from many banks, which argued they should be able to recover the costs of maintaining secure data-sharing systems. Industry observers have anticipated a significant rewrite since the CFPB announced last year it would revisit the regulation through a new notice-and-comment rulemaking.
Originally reported by CU Today.