Crypto lobby urges Trump to defend open banking as banks are pushing the stablecoins
A coalition of trade groups that represents crypto, fintech, retail, and restaurant industries urged President Donald Trump to defend open banking policies under the so-called legal attack of the country’s largest bank.
In a Letter Sent on July 23, organizations including the Blockchain Association, Crypto Council for Innovation, and the Financial Technology Association claimed that the most powerful US banks are disturbing the change by regulating to hinder the implementation of new open banking policies and imposing “stunning” newly fees on FinTech and Crypto apps.
On July 11, Bloomberg reported JPMorgan plans to start charging fintech firms fees for accessing their customers’ bank account data. According to pricing sheets sent to customers, fees are different based on how information is used, with a higher charge applied to payment companies.
“Let’s clearly: Financial data belongs to Americans, not the banks,” the letter reads. “The freedom to choose financial tools and control one’s own data is primarily in the free market and personal freedom – the American values.”
The letter encourages the Trump administration to file a legal short by July 29, asking the court to confirm that consumers, not banks, owned their financial data and has the right to share it with the apps they choose, free of charge.
The outcome of the case can determine how easy Americans can connect their bank accounts to services such as crypto exchanges, Stablecoin wallets, and payment apps.
Related: How traditional financial tools are accessible
Understanding Open Banking
Open Banking is a framework that allows consumers to safely share financial data with third-party apps through APIs.
Suggested in 2022 During Trump’s first term, the open banking rule in the United States was Ended On October 22, 2024, giving the right to share their financial data throughout the platforms, a major building block for stablecoins, defi apps, and crypto on-ramp.
“The rule has raised the bar for safety and security and established Commonsense standards that benefit the entire ecosystem, including banks, fintech, and digital asset companies. It also ensures that changing the US financial system is environmental in the world,” according to the letter.
On the same day the rule was that -finalized, the Bank Policy Institute, a trade group that represents major banks such as JPMorgan Chase, Wells Fargo and Bank of America, Sued To block this, focusing that it has caused security risks and unfair burdens of incumbents.
Open banking is a fact that in countries such as the United Kingdom, Brazil and the European Union.
https://www.youtube.com/watch?v=XQHQCB75FY0
Large banks pushing in crypto while fighting with open banking
While challenging open banking in court, US banks continue to move in the digital assets sector.
In May 2024, Cointelegraph reported Mastercard and ten central US banks, including Wells Fargo, participated in a tokenization pilot who tried how tokenized bank deposits and US treasurys could be used for close instant repairs to a shared ledger.
On July 15, JPMorgan filed a US trademark application For “JPMD,” a stablecoin based blockchain for institutional repairs. The application details are planned to offer a wide range of crypto-associated services, including digital asset trading, exchange, transfer, cleaning, and payment processing.
Related: Anchorage Digital announces the Stablecoin issuing platform on genius heels
Pro-Crypto president tried
Meanwhile, President Trump has become one of the most important crypto supporters among the leaders of the world. He actively adopted the crypto community, and some believe the crypto lobby is partially responsible for him Success.
On July 18, when signed the Genius ActTrump said, “I promise we will restore American independence and leadership and make the United States the capital of the world’s crypto, and that’s what we have done.”
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