A coalition of industry groups spanning cryptocurrency, financial technology, retail businesses, and restaurants are urging US President Donald Trump to champion regulations that empower individuals to control their financial information and share it securely with preferred apps and services.
In a letter issued on July 23rd, organizations including the Blockchain Association, Crypto Council for Innovation, and Financial Technology Association assert that major banking institutions are actively impeding innovation.
The core issue lies in these banks’ efforts to block the implementation of open banking rules through litigation and by creating obstacles for applications attempting to access necessary data.
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The letter emphasized:
To be clear, personal financial data belongs to consumers, not banking corporations. The right to select financial tools and manage one’s financial data is a key principle of open markets and individual freedom—fundamental American values.
The involved organizations are requesting that the Trump administration file an amicus brief by July 29th. This legal argument would reinforce the concept that consumers, rather than financial institutions, have ownership of their financial data, granting them the freedom to share it with other services without incurring undue fees.
The communication clarifies that open banking is beneficial across the entire financial ecosystem. The letter mentions that the establishment of clear rules for data sharing will make the system safer while providing clear industry standards. Banks, technology businesses, and cryptocurrency firms can all benefit from these norms.
Furthermore, it stated that leadership in this area has made America a leading innovator in global finance.
Earlier, on July 17th, banking institutions and credit unions appealed to US regulators, requesting that federal bank licenses for cryptocurrency companies be temporarily withheld. Want to know why? Dive into the complete details here.
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