Hsu: OCC has concluded fintech charter review

The OCC has concluded its review of bank charter applications and crypto-related interpretative letters and will be communicating its findings in the coming weeks, Acting Comptroller of the Currency Michael Hsu said.

Crypto Sprint: In remarks to the American Fintech Council, Hsu said the OCC has also concluded a “crypto sprint” with the FDIC and Federal Reserve. The agencies will communicate the results “shortly,” he said.

Regulatory Perimeter: Hsu said the results of these efforts will align with a “vision” he laid out in the speech, in which he targeted “synthetic banking providers” that offer banking services outside the “regulatory perimeter” and called for agencies to coordinate and modernize their regulatory response.

Background: Hsu initiated the charter review shortly after he was named acting comptroller in May amid concerns with the agency’s special-purpose bank charter for fintech firms. At the time, he told Congress that there are benefits of providing charters to fintech firms but he has concerns about allowing nonbanks into the banking system without sufficient oversight.

ICBA Position: ICBA has repeatedly said the OCC does not have authority to charter special-purpose national banks that don’t take deposits and has called on Congress to intervene.