While the acting Comptroller now supports a fintech charter, indicating the support of the Trump administration, key questions remain in how or when the legal framework for a fintech charter will be implemented.
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U.S. Banking Regulator Supports Giving National Licenses to Financial-Technology Firms
“Platforms in the market are not going to start applying for the charter and submit to that form of regulation until they understand exactly how it works,” said Brian Korn, co-head of the financial services group at law firm Manatt Phelps & Phillips LLP. Mr. Noreika said his office will defend in court its authority to grant fintech licenses. Two lawsuits brought by a group of state regulators and New York are in the beginning stages. While the litigation is pending, Mr. Noreika said his agency would look at ways to license the firms. “Suffice it to say, the agency is developing its litigation response and plans to defend this authority vigorously.” Mr. Noreika said he wanted to set the record straight on accusations by the states that the OCC lacks the authority and could harm consumers.
