On July 29, 2025, the PYMNTS reported that the CFPB asked a judge to stay a lawsuit challenging the open banking rule implemented last year by the Bureau’s previous leadership under the Biden administration. On October 22, 2024, the CFPB issued the Personal Financial Data Rights Final Rule that will give consumers greater rights, privacy, and security over their personal financial data.
The Personal Financial Data Rights Final Rule (Section 1033 Rule) requires financial institutions, credit card issuers, and other financial providers to unlock an individual’s personal financial data and transfer it to another provider at the consumer’s request for free. In June this year, the CFPB asked a federal court to vacate the rule, citing the rule’s “numerous legal infirmities.
In its latest action on the rule, the CFPB filed a motion to stay the lawsuit filed in June. Reports say that the CFPB will engage in an “accelerated rulemaking process” to revise the rule, beginning with its issuance of an advanced notice of proposed rulemaking to be released within three weeks. As stated in the CFPB’s motion, “The Bureau seeks to comprehensively reexamine this matter alongside stakeholders and the broader public to come up with a well-reasoned approach to these complex issues that aligns with the policy preferences of new leadership and addresses the defects in the initial Rule.”
Read the PYMNTS article here.
A copy of the CFPB’s motion published by the Financial Technology Association can be found here.