05.01.2018

Fintech-Regulation Debate Delayed

It is not the right time to determine who should regulate fintech startups, according to the US District Court for Washington, D.C., which has dismissed a lawsuit to prevent the US Comptroller of the Currency from establishing nation-wide charters for fintech companies.

US District Judge Danny Freidrich concluded in her decision that since the OCC had not made a final decision regarding nation-wide charters that any claim of harm to the Conference of State Bank Supervisors, which brought the suit, was speculative, reported Reuters.

Such charters might ease the regulatory burden on new fintech companies by having them apply for a single nation-wide charter rather than seeking regulatory approval from each state in which they would wish to operate.

The conference filed its suit in April 2017 and cited that the OCC overstepped its statutory authority in planning to grant such charters.

“In essence, the judge decided that the OCC has not made a final decision on proceeding with the fintech charter and, thus, the matter is not yet ripe for consideration. As a result, the judge did not render a decision on the merits of our case,” John Ryan, president and CEO of CSBS, said in a prepared statement.

The OCC expects to publish its position on nation-wide fintech charters in the next 60 to 90 days, reported Reuters.

Related articles

  1. Exchange groups seek to tap into increasing institutional interest.

  2. The not-for-profit initiative will make it easier to ensure funds are comparable and clear about costs.

  3. ICS, a digital platform provides transparency and comparability of the impact of investments.

  4. From The Markets

    BIS Innovation Hub Expands

    New hubs will open across Europe and in North America in cooperation with central banks.

  5. Summer Trading Network 2016

    There is a significant risk of the sector losing a large number of startups.