Fintech, crypto CEOs fight against banks' proposed data access fees - report

A group of fintech and crypto executives are appealing to the Trump administration to prohibit U.S. banks from charging fees for access to customer data, reasoning that such fees would hobble innovation and cause many small businesses and financial tools to shut down, according to a media report. 

CEOs from Robinhood Markets (NASDAQ:HOOD), Klarna Group (KLAR), and crypto exchange Gemini were among the list of companies, lobbying groups, and investors that signed a letter sent to president Donald Trump, Bloomberg News reported on Thursday.

In July, Bloomberg reported that JPMorgan Chase (NYSE:JPM) drew up a plan to charge fintech companies for access to its customer data. PNC Financial Services (NYSE:PNC) CEO William Demchak said his company is thinking about imposing a fee, as well. "There's a big cost to keeping this data secured and producing in a form that's readable for our clients," he said during the company's Q2 earnings call.

In the letter to the president, the crypto and fintech representatives wrote, "We urge you to use the full power of your office and the broader administration to prevent the largest institutions from raising new barriers to financial freedom. We cannot allow the most powerful, entrenched banks to close the door on a more open and modern financial system."

Other executives that signed the letter include Tyler and Cameron Winklevoss, who head up crypto exchange Gemini, and CEOs of Kraken, Paradigm, Adyen (OTCPK:ADYEY) (OTCPK:ADYYF), PayPal Holdings (NASDAQ:PYPL), and Stripe (STRIP).

Trade groups the Financial Technology Association and the American Fintech Council also signed the letter.