The financial technology and encryption industry has launched a struggle: refusing to allow banks to charge for customer personal data.

The fintech industry has sought help from the Trump administration in an attempt to stop the threat posed by banks led by JPMorgan Chase that would charge fintech companies for accessing customer bank data. (Background: Don't love stablecoins? JPMorgan: Why regulators in Europe and Singapore prefer "tokenized deposits") (Background: JPMorgan pours cold water: Stablecoin market capitalization will only be $500 billion in 2028, why is it four times lower than the optimists?) The fintech industry has sought help from the Trump administration in an attempt to stop the threat posed by banks led by JPMorgan Chase that would charge fintech companies for accessing customer bank data. According to the pricing table proposed by JPMorgan, fintech and cryptocurrency industries may need to pay hundreds of millions of dollars to obtain customer bank account information, which is currently available for free. This information allows companies like Venmo and Coinbase to easily accept customer fund transfers, verify bank balances, and understand customers' financial histories to provide loans. However, JPMorgan CEO Jamie Dimon stated during this week's earnings call that establishing a system for securely sharing data has "cost the banks a lot of money." A spokesperson for JPMorgan stated that the bank is having "productive discussions" with the industry on this issue. Ethan Bloch, founder of Hiro, an AI personal finance application developer, stated: "If JPMorgan does the work of providing data, charging some fees is reasonable. But if the fees are too high, it could stifle the entire industry or severely harm it." Two major fintech trade groups—the North American Financial Data and Technology Association and the Financial Technology Association—have stated that they have met with the Treasury Department in recent weeks, urging regulators to uphold a regulation known as open banking rules. This regulation was released during the Biden administration, requiring banks to allow consumers to share data with other financial institutions for free. As part of the lobbying effort, some in the industry pointed out that President Trump issued an executive order calling for federal agencies to gradually phase out paper checks to modernize payments. They believe that allowing banks to charge for customer data will hinder this financial innovation. The open banking rules stem from laws established after the financial crisis. It gives consumers, rather than banks, ownership of their bank data. This means that when consumers wish to share data with external companies like PayPal, banks cannot charge a fee. The rule was finalized last year, and banks filed lawsuits to try to block its implementation. In May of this year, the Trump administration effectively sided with the banks, stating it would repeal the rule. This issue only gained widespread attention recently after JPMorgan sent pricing information to some companies, informing them of the fee standards for accessing bank account information, as reported by Bloomberg last week. Other banks are expected to follow suit. The Treasury Department and the Consumer Financial Protection Bureau, which is responsible for regulation, did not respond to requests for comment. The cryptocurrency industry faces the same fee issues as fintech companies, but due to Congress previously deliberating on cryptocurrency legislation, the response from the crypto industry has been slower. However, more and more executives in the crypto industry are starting to speak out. Kraken's co-CEO, Ajit Seti, tweeted that JPMorgan's fees are "a burden." He added that by charging for access to data, "banks can decide who has the right to build and what services these builders can provide." More banks may follow suit. Industry executives are watching Bank of America and PNC, as they have large customer bases and histories. In 2019, PNC blocked Venmo from accessing customer account information, directing users to use the bank-owned payment system Zelle instead. During last Wednesday's earnings call, PNC CEO Bill Demchak indicated that the bank is also considering charging fees and praised JPMorgan's actions. Bank of America did not respond to requests for comment. The largest data aggregators, including Plaid, are currently negotiating with JPMorgan over the upcoming fees, which could reportedly reach hundreds of millions of dollars per year and may take effect as early as late this summer. Stocks of companies like PayPal and Block had previously fallen due to JPMorgan's actions but have since recovered. There are concerns that data aggregators like Plaid may pass on increased costs to these platforms. According to Bloomberg, JPMorgan's pricing plan will charge the highest fees to fintech companies focused on payments. This could impact some crypto companies that need to transfer funds between customer bank accounts. Crypto advocates, including A16z co-founder Ben Horowitz (, have stated that the high fees banks charge for transferring funds into cryptocurrency applications could become a new bottleneck for the industry. Some within the industry downplay the potential impact of these fees on their businesses. PayPal stated that its data aggregators (such as Plaid, Yodlee, and Mastercard's Finicity) used for verifying customer accounts will have to bear the costs, as PayPal's contracts with these companies prohibit cost pass-throughs. Startups may face a greater impact than larger companies, as larger companies have stronger bargaining power. For example, PayPal has deposits at JPMorgan and is a client of its investment banking services. Budgeting and investment applications may struggle to cope with these fees. For example, Hiro provides personalized advice using users' financial data (such as checking and savings transactions, credit cards, brokerage accounts, and student loans). Bloch of Hiro stated that JPMorgan is "the most important bank in America today, and they will set the example for everyone else. The banking industry will face less competition, and innovation will slow down. I find this very disappointing." The court battle between banks and the government continues, even though the Trump administration has decided to withdraw the case. The Financial Technology Association has filed a motion to defend open banking rules, and the Consumer Financial Protection Bureau is required to submit a response by July 29. Related reports: Trump signs the GENIUS stablecoin act; Tether: striving for USDT compliance and issuing US-exclusive stablecoins; how will Circle respond? A comprehensive analysis of the impact of the GENIUS stablecoin act is far more profound than you think: rewriting financial rules. Coinbase "data leakage, false user numbers" under investigation by the SEC; stock price plummeted 7% in a single day. "Fintech and crypto industries fight back: refusing banks to charge for customer data." This article was originally published in BlockTempo, the most influential blockchain news media.