The Consumer Financial Protection Bureau (CFPB) has approved Financial Data Exchange (FDX) as the first official standard-setting body under its new open banking framework.

The decision follows the CFPB’s October release of the Personal Financial Data Rights rule, which mandates financial institutions and credit card issuers to allow consumers to transfer personal financial data to other providers upon request, free of charge. The approval marks a key step in establishing a secure and interoperable ecosystem for open banking in the United States.

FDX, with over 200 members committed to secure data access standards, cleared the CFPB’s formal application process, which outlines strict requirements for industry bodies seeking standard-setting status. However, the approval comes with specific conditions to ensure fair practices and prevent industry dominance. FDX must prohibit ‘pay-to-play’ schemes, report regularly to the CFPB on market adoption, and make consensus standards publicly available with equitable access for non-members. These measures aim to foster transparency and prevent conflicts of interest within the open banking landscape.

Despite this progress, the CFPB’s open banking rule faces legal challenges. The Bank Policy Institute and the Kentucky Bankers Association filed a lawsuit in October, arguing that the agency exceeded its authority in implementing the new regulations. As debates around regulatory overreach continue, the CFPB's endorsement of FDX reflects a determined push to advance consumer-centric data portability while balancing oversight and industry participation.