State regulators refile lawsuit over OCC fintech charter plans

State regulators refile lawsuit over OCC fintech charter plans

US state financial regulators are to renew their litigation efforts over the recent decision by the Office of the Comptroller of the Currency to create a special purpose charter for financial technology firms.

It's the second time that the Conference of State Bank Supervisors (CSBS) has filed suit against OCC. A previous attempt was dismissed by a federal court judge as the OCC had not yet committed to the programme.

With the OCC’s 31 July announcement creating a federal fintech charter, the CSBS Board has decided to reaffirm its commitment to challenge the OCC's action.

The CSBS alleges that the OCC is over-reaching its authority in granting charter status to non-banks.

John Ryan, CSBS president and CEO, states: “If the OCC is allowed to proceed with the creation of a special purpose nonbank charter, it will set a dangerous precedent that any federal agency can act beyond the legal limits of its authority. We are confident that we will prevail on the merits.”

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