Banks Seek to Pause Biden Data Access Rule While CFPB Reworks It

Banks asked a federal judge in Kentucky to delay implementation of the Consumer Financial Protection Bureau’s rule enabling consumers to transfer their data to fintechs while the agency works on a new version.

The CFPB won its bid to halt litigation over the Biden-era open banking regulation while it develops a replacement, but the agency didn’t ask for a stay in the rule’s implementation dates. For the largest banks, that means getting ready by next April to operate under a rule that the Trump administration had previously said was “unlawful.”

That situation was untenable for banks, the ...