American Banker: Industry Caught Off Guard by Senate Opposition to Fintech Charter

An article this week in the American Banker highlights some of the dangers presented by the OCC fintech charter, and why some Senators are questioning the OCC’s move:

“Their comments echoed the complaints of state banking regulators, who worry that the charter would allow nationally chartered fintech companies to evade state consumer protection laws.”

“We share the senators’ concerns,” said Margaret Liu, senior vice president and deputy general counsel at the Conference of State Bank Supervisors. The charter “will stifle innovation by arbitrarily picking winners and losers, once again preempt state consumer protection laws, and expose the taxpayer to further risk.”