Crypto Industry Asks President Trump to Stop JPMorgan’s ‘Punitive Tax’ on Data Access
Ten major fintech and crypto trade associations have urged President Trump to intervene in what they perceive as a concerted effort by large banks, spearheaded by JPMorgan, to stifle innovation and limit competition. Their concerns center on JPMorgan’s plan to charge fees for access to consumer banking data, a move they believe will severely impact the fintech industry and consumers alike.
The letter, sent on Wednesday, highlights the potential consequences of JPMorgan’s actions. The fees, potentially reaching $300 million annually for Plaid alone (representing over 75% of its revenue), threaten the viability of aggregators like Plaid and MX. These companies facilitate the transfer of funds between bank accounts and platforms such as Coinbase and Kraken, a crucial function for the functioning of digital wallets and exchanges. Without affordable access to this data, millions of Americans could be effectively de-banked, hindering the adoption of stablecoins (like USDC and USDT) and self-custody wallets.
The associations argue that financial data belongs to the consumer, not the banks. They contend that JPMorgan’s actions directly contradict the administration’s goal of establishing America as a global leader in financial innovation. The letter specifically requests White House intervention before July 29th, the deadline for submitting a legal brief regarding the Consumer Financial Protection Bureau’s (CFPB) open banking rule (Rule 1033).
Rule 1033, finalized in late 2024, mandates that banks provide consumers with free access to their financial data and enable its sharing with third-party services. This rule aimed to create a more level playing field between traditional banks and fintech companies. However, banks, including JPMorgan, immediately challenged the rule in court, seeking its dismissal. The CFPB has since requested the court vacate the rule entirely.
Kraken co-CEO Arjun Sethi described JPMorgan’s move as a “calculated shift” that transforms user data into a commodity subject to tolls. He warned of a potential future where all financial interactions are controlled by centralized systems that monitor, price, and restrict access to personal data. He emphasized that while crypto offers an alternative, its future is not guaranteed without intervention to protect open banking principles. The situation highlights a critical conflict between established financial institutions and the burgeoning fintech and crypto sectors over data ownership and access.
