The Office of the Comptroller of the Currency’s (OCC) creation of a Fintech charter program is being challenged with the recent complaint filed by the Conference of State Bank Supervisors (CSBS). The complaint alleges that the OCC does not have the statutory authority to create a new nonbank charter and did so without adequately addressing the myriad policy implications and concerns raised by the public.
In the Crowdfund Insider article, "OCC Fintech Charter Lawsuit Creates 'Increasing Headwinds' for Progress," RK&O partner Vincent Basulto weighs in on the lawsuit, "The lawsuit is indicative of the strong—and increasing—headwinds which the OCC faces in trying to move its FinTech charter proposal forward. In addition to objections from state regulators, the OCC’s proposal has been criticized by Congress, banking groups, consumer advocacy groups and even FinTech companies for a number of different reasons. Although I think the charter is a well-intentioned effort to keep abreast of changes in the financial markets, this is the latest signal which suggests that it may be difficult for the OCC to continue in the face of attacks from multiple fronts, especially given the uncertain status of Comptroller Curry." Mr. Basulto's comments regarding the lawsuit were also featured in Law360's article, "OCC May Face Trouble Defeating States' Fintech Charter Suit."