JPMorgan Stops Gemini From Rejoining Due to Ongoing Controversy over Banking Data Regulations
The Consumer Financial Protection Bureau (CFPB) has decided to substantially revise its 2024 Open Banking Rule, following lawsuits filed by banking associations challenging the rule’s legality. This action means the current legal disputes, including those involving major banks like JPMorgan and fintech-related entities such as Gemini, are paused pending the rule’s revision.
The Open Banking Rule, finalized under Section 1033 of the Consumer Financial Protection Act, granted consumers the right to share their banking data with trusted apps. However, banks argued that under Section 1033 of the Dodd-Frank Act, the sharing of sensitive financial data should be limited strictly to consumers or their authorized representatives with fiduciary-like relationships, not broadly to third-party fintech companies.
JPMorgan, for instance, has paused its re-engagement with cryptocurrency exchange Gemini due to a dispute over fintech data access rules. This pause may signal ongoing friction between traditional banks and digital asset platforms. Gemini co-founder Tyler Winklevoss accused JPMorgan of attempting to obstruct fintech and crypto platforms by limiting access to customer banking data.
Meanwhile, companies like JPMorgan and Gemini remain in a state of uncertainty regarding the data-sharing requirements and protections until the new rule is finalized. Existing federal consumer privacy laws—such as the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act—continue to apply to data sharing in the open banking ecosystem regardless of the status of the CFPB’s rule.
The CFPB’s revision aims to address these concerns and other market developments by engaging stakeholders to create a more robust and legally sound framework. The banks and fintech companies involved in the legal disputes will closely watch the CFPB’s progress as they navigate the temporary pause on enforcement and litigation.
In the meantime, other legal battles persist. The Storm trial, involving Binance and Tornado Cash, is being challenged due to late evidence. The defense claims that the government failed to disclose major evidence tied to funds traced through Binance and Tornado Cash until the weekend before trial testimony. Decisions are expected soon on whether venture capitalist Tom Schmidt of Dragonfly will testify, following his attorney’s invocation of the Fifth Amendment.
The legal fight brews over CFPB’s Open Banking Rule and aggregator fees. JPMorgan is planning to set new fees on fintech firms that access customer data, raising concerns about the role of unregulated data aggregators. The CFPB’s revision is expected to address these issues and provide a clearer path forward for the open banking ecosystem.
As of late July 2025, a federal judge has granted a stay on the lawsuit proceedings while the CFPB undertakes an accelerated rulemaking process to reconsider and rewrite the regulation. A notice of proposed rulemaking is expected within three weeks.
In summary, the CFPB’s Open Banking Rule, adopted in 2024, is on hold and subject to major revisions after legal challenges by banks, including JPMorgan. This temporary pause on enforcement and litigation allows for a significant rule rewrite that may alter the landscape for bank-to-fintech data sharing soon.
[1] CFPB Press Release, "CFPB Announces Plans to Substantially Revise the 2024 Open Banking Rule" (July 2025). [2] Banking Dive, "CFPB to reconsider Open Banking Rule after legal challenges" (July 2025). [3] American Banker, "CFPB's Open Banking Rule on Hold: What Banks Need to Know" (July 2025).
- The ongoing legal challenges against the CFPB's Open Banking Rule have resulted in a temporary pause, allowing for ventures like JPMorgan and Gemini to closely observe the Bureau's progress as they rewrite the rule.
- With the new rule anticipated to address the concerns of traditional banks and fintech companies regarding data-sharing, blockchain platforms like Binance are also embroiled in legal battles, such as the Storm trial, seeking clarity on their data-sharing rights and obligations.
- The revision of the Open Banking Rule willnot only influence bank-to-fintech data sharing, but also impact the roles of data aggregators and the fees they charge, given the concern about unregulated entities within the technology-driven financial business sector.
