Earlier this month, Judge Marrero denied a motion to dismiss a complaint brought by the New York State Department of Financial Services (DFS) against the U.S. Comptroller of the Currency (OCC).  The complaint challenged the Comptroller’s decision to begin issuing special purpose national banking (SPNB) charters to financial technology (“fintech”) companies that, among other things, exempted the companies from certain federal liquidity and capitalization standards.  DFS argued that the charters undermined New York’s ability to regulate and protect its financial markets.  The Comptroller moved to dismiss, arguing that DFS had not suffered an Article III injury, that the action was not ripe because no SPNB charter applications had been received from fintech companies yet, and that DFS failed to state a claim under the Tenth Amendment.

Continue Reading Judge Marrero Allows New York State Challenge to Federal Fintech Banking Charters to Proceed