WASHINGTON— The Consumer Financial Protection Bureau said it will issue an “interim final” rule governing open banking and consumer data sharing — a step back toward regulation even as the agency faces a looming funding shortfall.
Under the new plan, the CFPB said its interim regulations will temporarily replace the controversial “open banking” framework adopted in late 2024 under Section 1033 of the Dodd–Frank Act. In July, the Bureau reopened the rulemaking process and proposed an accelerated timeline for overhauling the rule entirely.
The original rule would have required banks and other financial institutions to provide consumers and authorized third parties access to personal financial data — such as transaction history, account balances and payment information — upon request and free of charge, the Bureau stated. However, after lawsuits from banking trade groups and objections from some institutions, a federal judge paused enforcement and compliance deadlines in October.
Budget Uncertainty
The CFPB’s announcement comes amid deep uncertainty about the agency’s budget; the bureau warned it could run out of funds by Dec. 31 unless Congress acts, as the CU Daily has been reporting. The interim rule is being adopted in part to ensure there is at least some regulatory framework in place for open banking while lawmakers and industry stakeholders wait for a final, more permanent solutions, Reuters noted.
According to various media reports, industry groups and fintech firms have around 14,000 public comments pending, and the interim measure is meant to provide a stop-gap — though critics say it may still leave important issues around data access, privacy and third-party fees unresolved.
