Big bank moves threaten financial innovation
Large U.S. banks are restricting competition from fintech and digital asset companies by charging high data access fees, threatening consumer choice. The author calls on the government to strengthen open banking rules (Section 1033) to ensure consumer data autonomy and avoid hindering innovation.
Editor's Note: Penny Lee is the President and CEO of the Financial Technology Association. Ji Hun Kim is the CEO of the Crypto Council for Innovation.
Americans' ability to access and use financial tools of their choice is under threat. In acoordinated effort, the United States'largestbanksare attempting to shut out fintech and digital asset competition to regain control over how Americans access their own money. Their new strategy is to set a price barrier on access to consumers' personal data and online financial tools, ultimately limiting consumer choice and fueling "de-banking." This is not about protecting security; it's about protecting profits, stifling competition, and innovation.
The Trump administration has made clear commitments to empower American entrepreneurs and remove barriers to innovation. From stablecoins to tax policy, this administration has shown a willingness to support policy changes that drive much-needed evolution in stagnant legacy models. We cannot let big banks decide which apps and services survive, undermining the administration's vision of a golden age of American innovation.
These anti-competitive strategies are exactly what the U.S. open banking rule, known as Section 1033, aims to prevent. As thegovernmentissues an executive order on "de-banking," protecting consumers' ability to access and share financial information should be a top priority to ensure consumers are not left with no choices.
The open banking rule, passed by Congress and initiated during the first Trump administration, guarantees Americans the right to access and share financial information from their bank accounts for use in other apps, products, and services, including digital assets. Now, some of the most powerful banks are exploiting regulatory uncertainty to charge high fees for consumer data access.
Because the fintech and digital asset industries rely on connections to traditional banks to move funds in and out, any disruption in access could jeopardize Americans' ability to pay bills, transfer money, or use the financial tools they depend on, including digital asset wallets. This is not a theoretical risk; we've seen it before, and it's happening again. Whether fintech platforms or emerging stablecoin systems, they all need access to the traditional banking layer to provide the services customers need. Without Section 1033 protections, big banks will charge Americans for using their own information to move, transfer, or invest their hard-earned money.
The reality is that U.S. policy has lagged far behind other countries in embracing digital transformation. Several major economies have adopted open banking rules, such as the UK, Brazil, Singapore, Japan, and Canada, and many are actively advancing digital asset frameworks to build trust. If we weaken open banking rules, we risk being left behind, trapped in legacy systems that fail to meet Americans' needs. The recently passed stablecoin legislation—the GENIUS Act, signed into law by President Donald Trump—is a critical step forward and should not be undermined by those seeking to entrench the status quo and keep Americans tied to legacy service providers.
As the rule reopens, the administration has the opportunity to further strengthen the foundation of fintech and digital assets by reaffirming consumers' right to freely use their data and access the financial services they need at reasonable costs. Embracing open banking not only protects consumer choice and market competition but also ensures the United States remains at the forefront of financial innovation and economic opportunity.