How the open banking rule skidded

Core Points - The Consumer Financial Protection Bureau (CFPB) is facing funding challenges that may hinder its ability to quickly formulate an open banking rule [2][3] - The CFPB has indicated it can operate with current funds until the end of the year, but future funding remains uncertain [2] - The bureau is working on a new open banking rule, with plans for an accelerated rulemaking process to address deficiencies in the previous rule [5][6] Funding and Operations - The CFPB cannot lawfully draw funds from the Federal Reserve System, which is its designated funding source, as concluded by the Justice Department [2] - The acting director of the CFPB has previously criticized the agency and mentioned the possibility of its closure within months [2][4] Rulemaking Process - The CFPB is revising the open banking rule, which was initially enacted under the Biden administration, and has been granted a litigation stay [3][5] - The bureau plans to potentially skip parts of the rulemaking process to issue a rule by the end of the year, which may include a public comment period [7] - Significant changes to the proposed rule, such as allowing fees for data access, would require an assessment of impacts on small businesses [6][8]