On December 10, in a federal court filing, the CFPB stated that it plans to issue an interim final rule revising its open banking framework under the Dodd Frank Act’s Section 1033. The disclosure came in a status report filed in the Kentucky federal court litigation challenge over the rule that directed banks to make account data available free of charge for consumer sharing with fintechs.
The filing reiterates that the Bureau expects to have sufficient funds to operate only through the end of the year and intends to proceed directly to an interim rule.
The filing explains that the CFPB will notify the court shortly after issuing the interim rule and will work with the litigants to determine appropriate next steps in the related litigation. While the filing does not describe the substance or timing of the forthcoming rule, it reflects the Bureau’s intent to complete expedited revisions before a possible lapse in funding.
Putting It Into Practice: The open banking rule has gone through significant shifts over the last year (previously discussed here, here, and here), and the CFPB’s move toward an interim final rule adds another rapid development to an already fluid landscape. Market participants that depend on consumer data should expect an update in the near term, as the Bureau appears positioned to publish a revised framework on an accelerated schedule. We will continue to monitor for further developments.