WASHINGTON--The CFPB will issue a new open banking advanced notice of proposed rulemaking within three weeks, according to a Tuesday court filing, America's Credit Unions reported.
ACU termed the decision a win for the credit union industry, as the rule as finalized in 2024 presented numerous compliance and privacy concerns, which ACU noted it has raised with policymakers.
"America’s Credit Unions will engage the Bureau in the rulemaking process to ensure the expedited timeline does not impact the quality of the rule nor its implementation," the trade group stated.
The rule requires financial institutions with more than $850 million in assets to provide access to certain consumer data upon receiving a request from an authorized third party at no cost to the third party. The CFPB, in a May court filing, argued that the rule is “unlawful and should be set aside.”
America’s Credit Unions wrote to the administration Friday, encouraging it to continue with rescinding the rule.
The Bureau’s Tuesday filing asks the court to stay a current challenge to the rule, as “the Bureau has now decided to initiate new rulemaking to reconsider the Rule with a view to substantially revising it and providing a robust justification. The Bureau seeks to comprehensively reexamine this matter alongside stakeholders and the broader public to come up with a well-reasoned approach to these complex issues that aligns with the policy preferences of new leadership and addresses the defects in the initial Rule.”
Within three weeks, the Bureau “plans to issue an advanced notice of proposed rulemaking that will serve as the starting point of an accelerated rulemaking process that the Bureau envisions culminating in a new final rule that substantially revises the Rule under review," ACU noted.
ACU added the CFPB's new rulemaking may make the pending lawsuit moot. If the stay is granted, the CFPB will file status reports every 90 days to keep the court appraised of the progress of the rulemaking.
DCUC Responds
The Defense Credit Union Council said it welcomes the CFPB's decision to pause litigation and initiate a substantially revised rulemaking process around Section 1033 open banking regulations.
"For too long, the 2024 open banking rule has posed substantial privacy, security, and operational risks—especially for smaller, mission-focused credit unions serving military members and their families. The CFPB is right to hit pause and reconsider the rule through a more thoughtful, stakeholder-centered approach,” said Jason Stverak, DCUC c hief advocacy officer. “Credit unions operate on trust. They simply cannot shoulder the same compliance burden—or risk exposure—as large banks. The rule as finalized could have forced these institutions to share sensitive member data with third parties lacking robust oversight, undermining both member privacy and institutional mission.
Stverak said DCUC has long urged a balanced approach—one that promotes consumer access to financial data without compromising security or imposing disproportionate regulatory burdens .
“As the Bureau embarks on this accelerated rulemaking, we urge it to prioritize regulatory predictability, transparent justification, and genuine engagement with credit unions and the communities they serve. This means recalibrating the rule’s scope, data-sharing protocols, and cost-benefit analysis to ensure innovation does not come at the expense of military readiness or member trust," Stverak said. "As stakeholders unite to provide feedback, DCUC is fully prepared to participate in the process. We believe meaningful public input and robust oversight can help develop an open banking framework that protects consumers and upholds the integrity of smaller, mission-driven institutions.”