A group of cryptocurrency and fintech executives urged President Trump to stop banks from charging customer data access fees, claiming it would limit consumer choices.
On Wednesday, Trump received a letter accusing big banks of maintaining market dominance by charging high 'account access' fees, preventing consumers from connecting to better financial products of their choice.
The letter is supported by the Gemini exchange, Robinhood trading platform, and crypto lobbying organizations, stating that the fee would weaken the U.S. cryptocurrency, artificial intelligence, and digital payment industries.
Cryptocurrency influences Trump's decision on open banking.
Last October, the Biden administration's 'Open Banking Rule' allowed customers to share bank data with fintech companies for free.
Despite the banking industry group opposing and suing the rule, Trump ultimately decided to retain the rule under pressure from crypto lobbying.
The fees will weaken the influence of U.S. cryptocurrency.
Crypto companies rely on bank data to link users' bank accounts, facilitating transaction operations.
Executives warned that bank data fees could 'weaken innovative products' or lead to their closure, undermining Trump's cryptocurrency policy goals.
The letter states, 'America's leadership in the development of digital assets relies on the connection between a secure, reliable banking system and the new ecosystem.'
Trump pledged to make the United States a haven for cryptocurrency and received support from the industry.
'We urge you to do everything in your power to stop major institutions from raising new barriers to financial freedom.'
Banking groups oppose the claim that cryptocurrencies seek 'government price intervention.'
The American Bankers Association accuses the companies in the letter of attempting to 'undermine the free market and seek government price intervention.'
Banks claim that these letters were written by 'intermediaries' attempting to mislead Trump into supporting policies from the Biden era.
This week, there are also differences between banks and the crypto sector regarding stablecoin issues, with banking groups demanding the closure of a 'loophole' that allows stablecoin issuers to pay returns through affiliates.
Legal Panel: Cryptocurrencies once aimed to disrupt banks, now they have become banks in the stablecoin struggle.