A coalition of ten prominent fintech and cryptocurrency trade organizations is appealing to President Trump, urging his intervention regarding what they describe as a concerted effort by major banking institutions to suppress innovation and stifle competition within the sector.
In a formal letter dispatched this Wednesday, these associations—including the Blockchain Association and the Crypto Council for Innovation—voiced serious concerns about JPMorgan’s proposed data access fees. The letter claims this strategy could effectively “de-bank” millions of Americans and severely impede the widespread adoption of stablecoins (USDC, USDT) and user-controlled digital wallets.
The crux of the dispute revolves around how individuals fund their digital wallets and interact with cryptocurrency exchanges. Facilitators like Plaid and MX enable users to seamlessly transfer funds from their traditional bank accounts to platforms such as Coinbase and Kraken, processes that depend on secure, user-authorized data access.
Until recently, banks have generally permitted this data access without imposing fees. However, JPMorgan has reportedly started notifying data aggregators that they will be required to pay for this access. Reports suggest these fees could reach up to $300 million annually for Plaid alone, potentially consuming over 75% of the company’s earnings.
“To be absolutely clear: financial data is the property of the American people, not the banks,” the letter stated. “By challenging open banking practices, the largest banks are directly contradicting your stated aim to position America as the global leader in financial innovation.”
The groups are pressing the White House to take action before July 29th, the deadline for the administration to submit a legal argument in an ongoing court case concerning the Consumer Financial Protection Bureau’s (CFPB) open banking regulation.
The CFPB’s open banking rule, officially known as Rule 1033, mandates that banks provide consumers with cost-free access to their financial account data and allow them to share it securely with trusted third-party services.
The intention of this rule was to create a fairer competitive environment between established banks and emerging fintech companies. However, banks filed lawsuits to prevent its implementation immediately after its finalization. Since then, the CFPB has formally requested the court to rescind the rule in its entirety.
Arjun Sethi, co-CEO of Kraken, commented on X (formerly Twitter), characterizing JPMorgan’s actions as a “calculated shift” aimed at turning user data into a revenue-generating tollbooth. He warned that this represents a concerning trend of centralization leading to increased control over personal financial information.
“We are facing a possible future where every financial transaction is managed by systems that track, price, and restrict access to your personal data,” he posted. “Cryptocurrency offers an alternative, but the success of that alternative is not guaranteed.”