BPI Weighs Lawsuit Against OCC Over Licensing of Crypto and FinTech Firms

The Bank Policy Institute (BPI) is contemplating a lawsuit against the Office of the Comptroller of the Currency (OCC) due to the OCC’s decision to grant national bank trust charters to cryptocurrency, payment, and FinTech companies. BPI and other banking groups are concerned that these licenses could pose risks to consumers and the financial system by allowing these firms to operate with fewer regulatory controls than traditional banks. While no final decision has been made, BPI has expressed reservations about the OCC’s actions, questioning whether the requirements for these applicants are sufficient given the associated risks.

A national bank trust charter offers advantages like preemption of state banking laws, access to the Federal Reserve payments system, and federal supervision. The OCC, under Comptroller Jonathan V. Gould, believes new entrants into the banking sector benefit consumers and the economy. However, BPI argues that unanswered questions remain regarding the appropriateness of the OCC’s requirements for these trust charters.

FinTech companies are increasingly seeking bank charters to expand their reach and product offerings, bypassing the need for state-by-state licensing and gaining direct access to the U.S. financial system. Without a charter, they rely on a complex network of state licenses and partner banks, whereas a charter provides nationwide access to essential financial infrastructure.

(Source：Pymnts)