US Judge Blocks CFPB’s Open Banking Rule Pending Review

A federal judge in Kentucky has paused enforcement of the Consumer Financial Protection Bureau’s open banking rule, which was designed to let consumers more easily access and share their financial data.

The injunction follows a lawsuit filed by Forcht Bank, the Kentucky Bankers Association, and the Bank Policy Institute, which argued that the rule exceeded the CFPB’s authority and imposed financial burdens. Judge Danny Reeves said the plaintiffs were likely to succeed and that compliance would cause unrecoverable costs. The rule, finalised under President Joe Biden, is now being reconsidered by the CFPB under the Trump administration. The banking groups said the ruling prevents unnecessary investment in a rule under revision. The injunction will stay in effect until the CFPB completes its new rulemaking process. The agency has not yet commented on the decision.