Crypto-Fintech Alliance Declares War on Big Banks in Historic Open Banking Battle

The gloves are off as cryptocurrency advocates and fintech disruptors form an unprecedented coalition against traditional banking giants.

The Regulatory Trench Warfare

Open banking rules have become the latest battleground where decentralized finance meets legacy institutions head-on. This isn't just policy debate—it's a fundamental clash over who controls financial infrastructure.

Why Banks Are Sweating

Traditional institutions suddenly face coordinated opposition from tech-savvy competitors who actually understand blockchain. The coalition's strategy? Out-innovate, out-maneuver, and out-lobby the old guard at their own game.

The Stakes for Everyday Users

Consumers stand to win big with true financial interoperability—unless the banking cartel succeeds in maintaining their walled gardens through regulatory capture. Because nothing says 'consumer protection' like eliminating competition, right?

This coalition represents the most serious challenge yet to banking's century-long monopoly. The revolution won't be centralized—but it might be regulated into oblivion if traditional finance gets its way.

Big Banks Push to Limit Open Banking Access, Threatening Crypto Wallet Links

The coalition argues that large banks are trying to narrow who qualifies as a “consumer representative” and introduce fees for data access, a MOVE critics say could choke off connections between the banking system and digital finance platforms such as stablecoin wallets.

“A strong open banking rule is crucial to a competitive, flourishing, and innovative financial services ecosystem,” the groups wrote.

“The largest banks want to roll back open banking, weaken data sharing, and crush competition to protect their market dominance.”

The CFPB finalized its version of Rule 1033 last year, requiring banks and credit unions to make consumer financial data available to authorized third parties.

However, the Bank Policy Institute, which represents the country’s largest banks, sued the CFPB, claiming the rule oversteps legal bounds and jeopardizes privacy.

The regulator later paused litigation and reopened consultations amid intense industry debate.

Crypto and fintech groups say the stakes are high. If banks succeed in imposing barriers, the United States could fall behind global peers like the UK, Singapore, and Brazil, all of which have well-established open banking frameworks supporting fintech growth.

The coalition’s letter warns that restricting data access could not only undermine digital innovation but also limit consumers’ freedom to choose financial services tailored to their needs.

“Financial data belongs to the American people, not the nation’s largest banks,” the letter states.

Industry leaders, including Gemini co-founder Tyler Winklevoss, also joined the discussion, arguing that Wall Street’s lobbying aims to “tax and control” users’ financial data.

“This is bad for crypto and financial innovation in America,” he said in a post on X.

Banks want to gut the Open Banking Rule (1033) so they can tax and control your financial data and remove your freedom to choose the services you want. This is bad for crypto and financial innovation in America.

Now is your chance to speak up by submitting a comment letter (link…

Watchdog Warns Privacy Laws Are Blinding Regulators to Crypto Risks

Last week, the Financial Stability Board (FSB), the G20’s top financial watchdog, cautioned that strict data privacy and confidentiality laws are preventing regulators from properly monitoring the fast-growing crypto sector.

In its latest peer review, the FSB said fragmented national rules and divided supervisory responsibilities have made it increasingly difficult for authorities to share crucial transaction and risk data across borders.

The 107-page report described how these barriers create blind spots that delay cooperation and allow crypto firms to exploit regulatory loopholes by shifting operations between jurisdictions.

While privacy protections remain vital, the FSB warned that limited access to reliable data leaves regulators “blind” to systemic risks.