Last updated: September 2026. Techeconomix Editorial Team — researched using primary reporting from Consumer Finance Monitor, the Congressional Research Service, and legal analysis from Cozen O’Connor, Mitchell Sandler, and Holland & Knight. See “Sources & Methodology” at the end of this article.
Quick answer: The CFPB’s “open banking” rule under Section 1033 of Dodd-Frank — which gives consumers the right to let third-party apps access their bank data for free — is finalized on paper but currently enjoined by a federal court and under active reconsideration by the CFPB. The Bureau sent a new proposal to OMB’s regulatory review office in August 2026, but as of this writing, no revised rule has been published. Here’s what’s actually happening, and why “the rule exists but isn’t enforceable” is the most accurate way to describe where things stand.
What Section 1033 Is Supposed to Do
Section 1033 of the Dodd-Frank Act gives consumers the right to request and receive electronic information about their own financial accounts — the statutory basis for what the industry calls “open banking.” The CFPB’s implementing rule, finalized in October 2024 under the Biden administration, would require banks and other data providers to share account and transaction data with consumers and any third party the consumer authorizes, generally free of charge. In practice, this is what lets apps like budgeting tools, lending platforms, and payment services see your bank balance and transaction history once you grant permission.
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Why the Rule Isn’t Actually in Force
The rule was immediately challenged in court by the Bank Policy Institute, the Kentucky Bankers Association, and Forcht Bank. A federal court in the Eastern District of Kentucky has enjoined the CFPB from enforcing it while the Bureau reconsiders the rule. The April 1, 2026 compliance deadline for the largest data providers passed without becoming a binding enforcement trigger, according to Cozen O’Connor’s legal analysis — meaning the rule technically exists but has no practical force right now.
The regulatory reversal is notable: the CFPB itself told the court it now views the original rule as unlawful and should be vacated, siding with the bank plaintiffs that had sued to block it. Rather than let the court simply throw the rule out, the CFPB asked to stay the case and initiate a new rulemaking process instead.
What the CFPB Wants to Change
In an Advance Notice of Proposed Rulemaking published August 22, 2025, the CFPB said it intends to replace the Biden-era rule with a version “more suited to market realities.” The Bureau specifically asked for input on four areas, according to Mitchell Sandler’s analysis:
- Who counts as a “representative”: Whether the term should be limited to fiduciaries like agents and trustees, or also include third-party service providers consumers authorize to access their data.
- Fees for data access: The original rule required free access; the CFPB is now weighing whether data providers should be allowed to charge fees to cover their costs.
- Data security standards: Whether the threat and cost-benefit picture around Section 1033 compliance justifies the security requirements as written.
- Compliance timeline: Whether the phased deadlines, originally running from 2026 through 2030, should be extended given the cost and complexity of building compliant infrastructure.
As of August 6, 2026, the CFPB sent its new Section 1033 proposal to the Office of Information and Regulatory Affairs (OIRA) for review — a required step before any significant federal rule can be published. OIRA review is typically expected to conclude within 90 days under Executive Order 12866, though it can move faster when an agency wants to act quickly.
States Are Starting to Fill the Gap
With federal open banking regulation stuck in limbo, Consumer Finance Monitor’s mid-2026 analysis notes that states have begun bringing their own data-sharing rules into focus — echoing the same federal-to-state regulatory shift we’ve tracked in Buy Now, Pay Later regulation, where New York moved to fill a void left by reduced federal enforcement.
What This Means If You Use Financial Apps
- Your data-sharing rights aren’t going away, but they’re not guaranteed either: Banks aren’t legally required to share your data with third-party apps under the enjoined rule, though many already do voluntarily through existing data-sharing agreements.
- Fees could eventually apply: If the CFPB’s revised rule allows data providers to charge fees, some “free” account-linking features you use today could carry a cost down the line.
- The scope of “representative” matters: A narrower CFPB definition could limit which fintech apps and services are allowed to request your data on your behalf.
Frequently Asked Questions
Is the CFPB’s open banking rule in effect?
No. The rule was finalized in October 2024 but is currently enjoined by a federal court while the CFPB reconsiders it. The April 2026 compliance deadline passed without triggering enforcement.
What is Section 1033?
Section 1033 of the Dodd-Frank Act gives consumers the right to access their financial account data and authorize third parties to access it on their behalf — the legal basis for open banking in the US.
When will a new open banking rule be published?
The CFPB sent its revised proposal to OIRA for review in August 2026. OIRA review typically takes up to 90 days, but no exact publication date has been announced as of this writing.
Sources & Methodology
This article draws on reporting and legal analysis from: Consumer Finance Monitor’s coverage of the CFPB’s Section 1033 rulemaking and OIRA submission; Cozen O’Connor’s client alert on the rule’s injunction status; Mitchell Sandler’s analysis of the CFPB’s Advance Notice of Proposed Rulemaking; Holland & Knight’s summary of the original compliance timeline; and the Congressional Research Service’s overview of Section 1033. Regulatory status reflects the most recently published information as of this article’s last-updated date and is subject to change as rulemaking proceeds.
This article is for informational purposes and does not constitute legal or financial advice.
