Wednesday, 23 December 2020

A storm is brewing between state regulators and the OCC over fintech licensing

A storm is brewing between state regulators and the OCC over fintech licensing

State regulators consisting of the CSBS and New Yorks Department of Financial Services, or NYDFS, instantly dogpiled the proposition as operating in defiance of the definition of “bank,” as well as in exceeding the OCCs own charter. The CSBS, for circumstances, resolutely refers to the OCCs work as “the Nonbank Charter Program. While the OCC has actually appealed the NYDFS case to the second circuit, the CSBS is using the Figure application to attack the whole program, looking for:” Declaratory and injunctive relief stating the OCCs Nonbank Charter Program and the Figure Charter unlawful and advising the OCC from getting, accepting, or authorizing applications for Nonbank Charters, consisting of the Figure Charter Application.” Central to the argument is whether a financial entity that does not hold deposits, like Figure, can be considered a bank and is therefore subject to the OCCs national jurisdiction. Back in 2018, Ottings statement preserved that the OCC already had the authority to charter “business that engage in one of the core banking functions (paying checks, lending cash, or taking deposits),” which did not necessarily need those banks to take deposits.

State regulators including the CSBS and New Yorks Department of Financial Services, or NYDFS, immediately dogpiled the proposal as operating in defiance of the definition of “bank,” as well as in violating the OCCs own charter. While the OCC has appealed the NYDFS case to the 2nd circuit, the CSBS is using the Figure application to assault the whole program, looking for:” Declaratory and injunctive relief stating the OCCs Nonbank Charter Program and the Figure Charter illegal and advising the OCC from getting, accepting, or authorizing applications for Nonbank Charters, consisting of the Figure Charter Application. Back in 2018, Ottings announcement preserved that the OCC currently had the authority to charter “business that engage in one of the core banking functions (paying checks, providing cash, or taking deposits),” which did not necessarily require those banks to take deposits.


A storm is brewing between state regulators and the OCC over fintech licensing

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