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Treasury: OCC Should Develop Special Charter for Fintechs
Wednesday, August 1, 2018 6:40 AM

The Office of the Comptroller of the Currency should forge ahead with plans to develop a special charter for fintech companies, the Treasury Department said Tuesday. In a new fintech report, Treasury also recommended that the Bureau of Consumer Financial Protection repeal its controversial payday lending rule and that policymakers develop a national data breach standard.

“The OCC’s special purpose national bank charter, proposed in 2016, presents an attractive option for firms interested in the benefits of having a single primary federal regulator,” the department said, in a new report that makes recommendations on the regulation of fintech companies. “This type of banking charter may provide a more efficient, and at least a more standardized, regulatory regime, than the current state-based regime in which they operate.”

Also in the report, Treasury said marketplace lenders are not subject to the same federal regulatory framework that other lenders face. “These limitations may impede the ability of banks and credit unions to partner with nonbank financial institutions, develop new platforms within the organization, or offer new and innovative services to customers,” Treasury said.

Treasury recommended that federal and state regulators establish a unified regulatory framework that encourages innovation—an effort that would establish a “regulatory sandbox.”

Read more at Credit Union Times