A lawsuit against the Consumer Financial Protection Bureau (CFPB) that had sought to strike down Biden-era “open banking” rules has been paused by a federal judge, allowing the agency more time to replace the contested regulations with a new version. “In light of recent events in the marketplace, the bureau has now decided to initiate a new rulemaking to reconsider the rule with a view to substantially revising it and providing a robust justification,” the agency said in a court filing, adding that it would commence an “accelerated” rulemaking process within three weeks. Under the rules adopted by former President Joe Biden’s administration, the CFPB proposed to govern data sharing between fintech firms and traditional banks that would enable consumers to easily transfer their personal data between providers free of charge.
CFPB says it will replace Biden-era ‘open banking’ rules
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