CFPB to rescind open banking rule

The CFPB intends to rescind its open banking rule under section 1033 of Dodd-Frank. According to a legal filing in a challenge to the rule filed Friday, bureau leadership has “determined that the rule is unlawful and should be set aside.”  

The rule would require data provider financial institutions with more than $850 million in assets to provide access to certain consumer data upon receiving a request from an authorized third party. Finalized in October 2024, the rule has a phased implementation schedule which would see the largest institutions begin compliance on April 1, 2026. However,  the Trump administration placed a hold on implementation. According to Friday’s filing, the CFPB intends to file a motion for summary judgment by Friday, May 30.  

America’s Credit Unions opposed the final rule due to concerns over data security and increased requirements. A recent Compliance Blog post analyzes the rule highlighting requirements and providing the latest on challenges from both the administration and in court.