Senator Lummis Pushes for Open Banking Rules — A Boost for Crypto and DeFi Innovation

Senator Cynthia Lummis has once again taken a strong stand in support of innovation within the financial system. In mid-October 2025, she urged the Consumer Financial Protection Bureau (CFPB) to finalize its long-awaited open banking rule, known as Section 1033, before the end of the year. This rule has been in discussion since 2023 and could completely change how financial data is shared in the United States  especially for the growing world of crypto and decentralized finance (DeFi).

Lummis warned that ongoing delays could slow innovation and make it harder for consumers to benefit from new digital financial services. She believes the rule could help both traditional and digital financial platforms work together in a safer, more transparent way.

What Is the Open Banking Rule?

The open banking rule, or Section 1033, aims to give consumers more control over their financial data. It would require banks to share customer data securely with approved third-party providers, such as budgeting apps, lending platforms, or DeFi services, if customers give their consent.

For example, if someone wanted to use a crypto lending app, they could choose to share their transaction history from their regular bank. This would help the app offer better rates or personalized financial products without customers being “locked in” by their bank’s systems.

Lummis argued that this kind of data-sharing could make financial systems more open and competitive, allowing crypto platforms to provide smarter and fairer services. However, she also emphasized the need for privacy and data protection, ensuring that consumers are always in control of what information they share.

In her letter to CFPB Director Rohit Chopra, Lummis criticized the agency for moving too slowly and acting alone rather than working with other regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). She warned that inconsistent rules across agencies could create confusion and prevent blockchain and DeFi innovations from reaching their full potential.

The CFPB began collecting public comments on the rule in 2024, but a final version has yet to be released. Lummis believes finalizing the rule soon could boost the $4 trillion crypto market and promote financial inclusion for people who currently struggle to access traditional banking services.

How Open Banking Could Help Crypto and DeFi

Open banking could become one of the most important bridges between traditional finance and blockchain-based systems. Here’s how the impact might look:

 

Area	Before Open Banking	After Open Banking (If Implemented)
Consumer Access	Limited to what banks allow	Consumers can safely share data with multiple platforms
Innovation in DeFi	Slowed by lack of data access	Faster product development and better financial tools
Privacy Control	Banks hold most of the power	Users decide who can see their financial data
Market Impact	Fragmented systems	Integrated digital and traditional ecosystems

 

Lummis believes that with secure data-sharing rules, DeFi developers could create new kinds of services — from faster cross-border payments to lending systems that rely on transparent blockchain records. However, some experts are cautious. They argue that open banking could also create new privacy risks if not managed carefully. If data is shared too freely, it might expose personal financial details to misuse or hacking.

A Step Toward a More Inclusive Financial System

Lummis’ proposal also ties into her broader efforts to promote cryptocurrency adoption in the U.S. She has previously introduced the BITCOIN Act, which explores ways for the U.S. to include Bitcoin in its national reserves. Her overall message is clear: the U.S. must adapt to the digital finance era rather than falling behind other countries that already have open banking systems, such as the United Kingdom. The U.K.’s success with open banking has inspired similar efforts around the world, showing that when customers control their data, competition and innovation increase across the financial sector. Lummis wants the U.S. to follow a similar path one that could help both traditional banks and crypto companies grow side by side.

If the CFPB finalizes the rule by the end of 2025, analysts believe it could unlock billions in new investments and strengthen the link between crypto and traditional finance. This could lead to a new wave of apps and services that combine blockchain transparency with bank-level reliability. However, if the rule is delayed further, it might discourage innovation and keep financial data locked within closed banking systems.

In simple terms, open banking could be the key to connecting the worlds of traditional finance and crypto, giving consumers more power, companies more opportunity, and the economy a new path toward innovation.