Crypto and Fintech Leaders Urge Trump to Block Bank Data Fees
A coalition of crypto and fintech executives has urged US President Donald Trump to prevent banks from implementing fees for access to customer data, arguing that such charges limit consumer choice.
The letter dispatched to Trump on Wednesday accused major banks of attempting to “preserve their market position by imposing exorbitant new ‘account access’ fees that would hinder consumers from linking their accounts to superior financial products of their preference.”
Supporters of the letter included crypto exchange Gemini, trading platform Robinhood, as well as crypto advocacy groups like the Crypto Council for Innovation and the Blockchain Association. They contended that these fees would hinder the US markets for crypto, artificial intelligence, and digital payments.
Former President Joe Biden’s “open banking rule” from the Consumer Financial Protection Bureau, finalized in October of the previous year, permits customers to share their bank data with fintech companies at no cost.
The rule was praised by the crypto community but faced significant opposition from major banking associations, which have filed lawsuits against the regulator. Initially, Trump aligned with the banks to abolish the rule, but reversed his stance in late July after being pressured by the cryptocurrency lobby to maintain it.
The Trump administration informed a judge that it would uphold the rule while working on a new one.
Crypto firms, such as exchanges, depend on banking data to link users’ bank accounts to their platforms, facilitating easier transfers from banks to exchanges.
In their letter on Wednesday, the crypto and fintech leaders warned that the bank data fees could “cripple innovative products” or potentially eliminate them entirely, which they claimed could negatively impact Trump’s objectives related to cryptocurrency.
“America’s ability to lead in the responsible development of digital assets depends on safe, reliable on-ramps connecting our banking system to the new ecosystem,” the letter stated. “Severing this connection will drive innovation offshore and diminish U.S. influence.”
Trump campaigned on creating a safe haven for crypto, and the cryptocurrency industry backed his presidential campaign last year with hundreds of millions of dollars.
However, banking associations led by the American Bankers Association countered the letter on Wednesday, stating that the group aims to “undermine free markets and engage in government price fixing.”
The banks accused the letter’s authors of being “middlemen trying to mislead” Trump into endorsing Biden-era policies “for personal profit and the right to free ride off the major investments banks have made in safeguarding consumer data.”
This week, the banking and crypto sectors have also been in dispute over stablecoins, with banking groups urging Congress on Tuesday to remedy what they allege is a loophole allowing stablecoin issuers to offer yields on their tokens through affiliates.
