The NYDFS Opposes Fintech Charter Proposed by the OCC

New York State regulators are not happy with the OCC’s willingness to grant bank-like powers to non-banks in the fintech movement.

“NY DFS disputes the OCC’s claim that it has the authority under the National Bank Act for this proposed new charter,” a letter by Superintendent Maria Vullo states. “Nonbank financial institutions are not banks nor are they similar to the entities encompassed by the National Bank Act.”

The letter goes on to make many points, one of which is the reminder of New York’s state sovereignty and another is the argument that such a regulatory experiment would lead to a financial crisis.

The letter follows similar concerns by Democratic members of Congress.

The full NYDFS letter to the OCC can be viewed here.