New York’s financial regulator will get its day in court against the Office of the Comptroller of the Currency (OCC) over the federal authority’s plans to introduce a bank charter for fintechs, which New York claims will undercut its ability to regulate effectively.
Judge Marrero of the District Court for the Southern District of New York announced last week that he was rejecting the OCC’s motion to dismiss the case.
The OCC claimed in its motion that the New York State Department of Financial Services (NYDFS) did not have the right to bring a lawsuit as the fintech charter derived its authority from the National Banking Act, so the rights of firms to apply for a federal charter only apply if they are in the “business of banking.”
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