JPMorgan to Charge Fintechs and Crypto Firms for Data Access

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.”

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.