On May 23, the U.S. District Court for the Eastern District of Kentucky received a status report from the defendants, the CFPB and Russell Vought, stating that the Bureau has determined the Section 1033 rule to be unlawful and should be set aside. The defendants announced their intention to file a motion for summary judgment by May 30, in line with the existing briefing schedule set by the court’s March 27 order. This decision follows a joint motion to stay proceedings filed by the parties to allow time for the Bureau’s new leadership to review the rule.

As previously covered by InfoBytes, several banking entities filed suit seeking to halt the CFPB’s Section 1033 final rule, which addresses personal financial data rights under 12 C.F.R. Part 1033. Following a 30-day stay in this case, the court granted a fintech trade association’s motion to intervene in this case (covered here) and emphasized the importance of adhering to the established briefing schedule.

Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.