U.S. Fintech Charter Impasse Remains Despite Lawsuit Dismissal

Despite a U.S. federal judge dismissing a lawsuit from state regulators seeking to block plans for a federal fintech charter, the path forward remains a rocky one — and the lingering uncertainty has left fintech providers skittish about applying for the license.

Judge Dabney Friedrich of the U.S. District Court for the District of Columbia tossed out a lawsuit earlier this month that had been brought by the Conference of State Bank Supervisors (CSBS), challenging plans by the Office of the Comptroller of the Currency (OCC) to establish a federal licensing program for non-bank fintech providers.

Friedrich ruled that the CSBS had no standing to challenge the charter because no fintech firms had yet begun the application process.

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