JPMorgan Chase and other major U.S. banks plan to charge fintech and crypto companies for access to customer banking data, reigniting a regulatory battle that could increase costs for apps like Coinbase and Robinhood. The move has sparked fierce pushback from crypto executives who warn the fees could harm startups and limit financial innovation.
Regulatory Battle Resurfaces
This is not the fight time banks will bring up. It started last year, but regulars managed to settle it. But 10 months later, Big banks have plans to reopen it. In fact, it led the Consumer Financial Protection Bureau (CFPB) to pause on a law that was meant to give customers full control of their financial data, for free.
JPMorgan has been criticized by crypto and fintech firms. Some executives say that the new fee will add more cost to businesses that are already working on tight budgets.
“I thought we were done with this one, but here we are again,” said Leigh Phillips, the CEO of SaverLife, a nonprofit app that rewards users for saving. “Our families are really struggling, so anything that increases costs or your risk of fees is a big deal.”
Crypto Space Pushed Back Against It
Last year, CFPB asked a federal court to pause the open banking rule after the news of the plan broke out. At the time, CFPB said it would review the entire plan. The delay halts the expected April rollout and throws open banking’s future into question. PNC Financial has also expressed interest in charging similar fees, while other banks like Goldman Sachs say they’re not planning to follow suit.
The crypto industry was swift to respond. Tyler Winklevoss, co-founder of Gemini, called the move a threat to fintech and crypto growth. Venture capitalist Ben Horowitz labeled JPMorgan’s action “horrible anti-competitive behavior.” The backlash reached the White House, where Trump adviser David Sacks and Donald Trump Jr. reposted Winklevoss’s warning about “banksters.”
Crypto Apps May Pay More for Data Access
Apps like Coinbase, Robinhood, and Wealthfront use customer data for everyday functions, such as tracking balances and verifying transactions. These data requests, known as “calls,” total about two billion per month at JPMorgan, according to Bloomberg. Currently, fintech firms pay aggregators like Plaid and MX for each call, sometimes up to $1.25 per customer. JPMorgan plans to charge the aggregators, potentially at even higher rates.
Banks argue they should be compensated for digital infrastructure and compliance costs associated with data access. “Data middlemen endlessly access our customers’ data for free — 90% of the time without a customer request — and then charge third parties for that same data,” a JPMorgan spokesperson told Bloomberg.
However, Crypto advocates say the fees would hit startups the hardest. Former CFPB official Dan Quan warned, “If you’re in that kind of business, you’re dead. You can’t afford to do that.” Groups, including the Blockchain Association and Financial Technology Association, urged Trump to defend the current rules in court.
Also Read: JPMorgan and Coinbase Partner to Expand Crypto Access
