US Senator Cynthia Lummis Backs CFPB’s Open Banking Rule, Highlights Importance for Digital Assets

Senator Cynthia Lummis, Chair of the Senate Banking Subcommittee on Digital Assets, has thrown her weight behind the Consumer Financial Protection Bureau's (CFPB) open banking rule. In a letter to the agency, Lummis urged the CFPB to maintain the rule, which is mandated by Section 1033 of the Dodd-Frank Act. The provision guarantees consumers access to and ownership of their financial data.

Lummis criticized large banks for restricting access to certain individuals and industries, including digital asset firms, for political reasons. She warned against allowing opponents of digital assets to manipulate regulations, increase costs, or hinder innovation. Such actions, she argued, could drive businesses overseas and undermine U.S. leadership in financial technology.

Open banking is pivotal for integrating digital assets into the U.S. economy, fostering competition, and enabling cheaper, faster payments. The rule also facilitates data sharing between consumers and crypto exchanges or stablecoin issuers. While Lummis disagrees with many aspects of Dodd-Frank, she views open banking as a critical exception that supports financial innovation.