New York Pressed By Second Circuit on Fintech Charter Challenge

New York’s top financial regulator faced Second Circuit judges’ questions over whether the state’s challenge of federal authority to license fintech lenders was too early since no charters have been issued.

The Office of the Comptroller of the Currency wants the appellate court to overturn a 2019 ruling that struck down agency rules on special national charters for fintech companies. A New York district court said the OCC 2017 rules violated the 1863 National Bank Act because they would allow firms that don’t collect customer deposits to obtain banking charters.

The U.S. Court of Appeals for the Second Circuit on ...