Cooley Sees CFPB’s Dodd-Frank Rule as Opportunity for Open Banking
The Consumer Financial Protection Bureau’s proposed Dodd-Frank Act rule is an opportunity for banks, fintechs and data aggregators to help shape financial data regulation, attorneys at Cooley said Wednesday (see 2508210038).
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Comments are due Oct. 21 on the proposed rule. The CFPB on May 30 asked the U.S. District Court for the Eastern District of Kentucky to vacate the bureau’s final rule implementing Section 1033 of the Dodd-Frank Act, citing regulatory overreach.
Cooley highlighted how the CFPB is seeking input on the definition for third parties that can access data on behalf of a consumer, fee structure, whether current data security standards, including the Gramm-Leach-Bliley Act, are sufficient. The rulemaking is an opportunity for “banks, fintechs and data aggregators to reengage with the CFPB on key issues, such as the scope of third-party access and introducing cost barriers that could shift the balance between traditional financial institutions and fintech innovators,” said Cooley.