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 in the meantime, the largest banks must get ready by next June to operate under a rule that the Trump administration had previously said was “unlawful.”

That situation was untenable for banks, the Bank Policy Institute said in a Wednesday filing, asking Judge Danny ...