Senator Cynthia Lummis declared it a “big day in Washington for digital asset market structure” as the Consumer Financial Protection Bureau (CFPB) moved to finalise open banking rules under Section 1033 of the Dodd-Frank Act. The Wyoming Senator, a leading voice for crypto regulation, praised the rule for empowering consumers, driving innovation and supporting financial inclusion across rural America.

The new framework gives individuals full ownership of their financial data, enabling them to securely share it with third-party apps and digital asset platforms. Lummis said this marks a critical step toward a transparent, competitive financial ecosystem where both traditional banks and fintech startups can thrive.

Open Banking: Fuel for Fintech and Crypto Innovation

The CFPB’s rule cements consumers’ rights to control and share their own financial data, the foundation of open banking. This means users can seamlessly connect bank accounts to fintech services like Venmo, PayPal, or crypto exchanges such as Kraken and Coinbase.

Lummis argues that open banking will help integrate digital assets into the U.S. financial system, facilitating faster, cheaper payments and encouraging responsible innovation. “Giving Americans control over their data strengthens privacy, competition and consumer choice,” she said.

Major banks, however, have challenged the rule, claiming it exceeds regulatory authority. Lummis countered that the opposition stems from banks’ desire to maintain exclusive control over user data, what she calls “their most precious asset.”

Wyoming Leads in Blockchain and Open Banking Policy

Wyoming continues to set the national pace on blockchain, crypto and fintech legislation. Since 2017, the state has enacted over two dozen laws promoting digital finance and its 2024 open banking law encourages local banks to adopt data-sharing systems compatible with national standards.

Lummis highlighted how such tools can transform rural economies by connecting residents to better credit, payment and savings options. “A farmer in Wyoming should be able to link their bank account to PayPal or a digital wallet just like anyone in New York or California,” she said.

Through open banking, small businesses and ranchers can automate payments, manage cash flow and access alternative credit scoring models based on real transaction data, boosting efficiency and financial resilience.

Ensuring Fair Access to Crypto and Financial Services

Lummis also warned that without open banking, some large banks could limit access to crypto exchanges and stablecoin platforms, stifling competition. She noted past instances where financial institutions reportedly cut services to certain industries and individuals, including digital asset firms, firearms manufacturers, churches and political figures.

By ensuring that consumers, not corporations, decide where their data goes, the CFPB’s rule prevents discriminatory practices and promotes fair access to digital markets. “Opponents of digital assets should not be allowed to rewrite the rules to protect their interests,” Lummis stated.

Balancing Innovation, Protection and Global Competitiveness

The CFPB insists that its framework balances innovation with consumer protection, aiming to create a unified standard for digital and traditional finance. The bureau emphasised that as fintech services expand, clear rules are essential to safeguard users while promoting growth.

Lummis believes this regulatory clarity will cement the U.S. as a global leader in digital finance. “This is how we keep innovation on American soil,” she said. “When consumers have freedom and entrepreneurs can fairly compete, we all win.”

With open banking now poised to reshape how Americans interact with money, data and crypto, it truly is as Lummis declared, a big day in Washington for digital assets.