The Consumer Financial Protection Bureau’s (CFPB) Section 1033 “open banking” rule—driven by President Biden’s former CFPB Director Rohit Chopra—hasn’t been vacated yet. But growing criticism from across the financial landscape is a clear signal: this top-down mandate threatens to do more harm than good.
Crypto champions, fintech advocates, and some government officials have framed this rule as vital for innovation. But that’s simply not true—and it’s not grounded in sound thinking. The Chopra rule isn’t about expanding consumer control. It’s about centralizing government control over how financial data moves—setting a dangerous precedent that weakens privacy, distorts competition, and politicizes the future of banking.
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