On July 29, the U.S. District Court for the Eastern District of Kentucky granted the CFPB’s motion to stay proceedings in a case challenging the Bureau’s Section 1033 rule after the Bureau signaled its plans to “engage in an accelerated rulemaking process” to address purported defects in the rule. Section 1033 is the Personal Financial Data Rights Rule referred to as the open banking rule. To this effect, the CFPB plans to issue an advanced notice of proposed rulemaking to gather feedback on the open banking rule within the next three weeks “with a view to substantially revis[e] it and provid[e] a robust justification.”
As previously covered by InfoBytes, the CFPB averred in a prior status report that the Section 1033 rule was unlawful and should be set aside. A fintech association then intervened in the case and urged the district court to uphold the rule (covered here), but did not oppose the CFPB’s latest motion.
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