U.S. Crypto Alliance Challenges Bank Data Fees to CFPB

U.S. Crypto Alliance opposes banks’ proposed data access fees that risk hindering DeFi and stablecoin innovation.

The U.S. Cryptocurrency Industry Alliance submitted a letter to the CFPB, opposing banks’ proposed data access fees. The alliance argues these fees could endanger both DeFi platforms and financial innovation in the crypto sector.

Several organizations, including the Blockchain Association and Crypto Council for Innovation, are involved. They urge the CFPB to maintain a competitive financial ecosystem by dismissing the banks’ proposals for data access fees.

Impact on Fintech and Crypto Sector

If imposed, these data fees could significantly affect U.S. stablecoin and DeFi platforms, disrupting crucial data connections between banks and digital asset systems.

These potential disruptions could impact stablecoin volumes and DeFi protocols within the U.S., hindering fintech growth and limiting user onboarding in a sector already complex.

Historically, open banking models have successfully supported fintech growth elsewhere, such as in the UK and EU, through secure data sharing. The U.S. risks falling behind if access fee challenges are unaddressed.

U.S. stablecoins and DeFi projects are at risk, potentially diminishing Total Value Locked (TVL) in the sector. The alliance’s opposition to fees reinforces their commitment to keeping U.S. fintech competitive and open banking accessible.

A strong open banking rule is crucial to a competitive, flourishing, and innovative financial services ecosystem… Over the past decade, many of the financial innovations Americans use today were developed with the policy certainty that the United States was moving toward an open banking system. — Kristin Smith, Executive Director, Blockchain Association, Coalition Letter