A major shift is underway in the financial world as fintech firm Plaid has agreed to begin paying for access to consumer banking data — a landmark deal that could redefine the balance between banks and technology companies. While the specifics remain private, sources confirm that Plaid and JPMorgan Chase have finalized a data-sharing agreement that includes a formal pricing structure.

The deal comes against the backdrop of a contentious policy fight. Just two weeks before the 2024 presidential election, the Biden administration’s Consumer Financial Protection Bureau (CFPB) moved to impose new restrictions that might have prevented this deal from happening at all.

The regulation, known as Section 1033 or the “open banking rule,” was crafted by Rohit Chopra, a Biden appointee and longtime Elizabeth Warren protégé. Inspired by European financial laws, it would require America’s largest banks to share customer financial data free of charge with third-party fintech firms — under the stated goal of promoting competition and consumer choice.

While Silicon Valley cheered the rule as a victory for fairness, many conservatives saw it as yet another example of Washington overreach.

Russ Vought, who served as Director of the Office of Management and Budget under President Trump, has long questioned the wisdom of Section 1033. In legal filings, Vought argued that the rule “undermines consumer privacy protections, imposes significant costs on banks, and gives unfair advantages to data brokers who profit by shuttling information between financial institutions and fintech firms.”

Fintech aggregators have countered that their role helps streamline data access and protect consumers from fragmented financial systems. But critics point out that many fintech companies are financially motivated to maintain a system where they receive valuable consumer data for free.

Economist Vance Ginn offered a sharp rebuke of the Biden-era policy, saying, “The Chopra rule isn’t about expanding consumer control. It’s about centralizing government control over how financial data moves.”

He added, “Banks invest heavily in cybersecurity, data infrastructure, and fraud prevention. Charging third parties for access to that infrastructure isn’t predatory — it’s economics.”

The Plaid-JPMorgan deal is now being cited as an example of how voluntary agreements between private entities can promote fairness and innovation without heavy-handed government mandates.

Under President Trump, the CFPB has formally reopened its review of Section 1033, signaling a possible rollback of the rule. The agency is actively gathering public input and industry feedback as part of its reassessment of the regulation’s legality and long-term economic consequences.

Trump’s CFPB may now see the Plaid deal as evidence that market-driven innovation can thrive when the government steps aside.

If more companies follow suit, conservatives believe it will strengthen the case for rolling back Section 1033 altogether — proving that the free market, not Washington, is best equipped to set the terms of financial progress.

, 2025-10-08 18:58:00, , Trending Politics Conservative Breaking News and Commentary, %%https://trendingpoliticsnews.com/wp-content/uploads/2024/10/cropped-tp-fav-2-32×32.png, https://trendingpoliticsnews.com/feed/, Chris Powell