American Fintech The American fintech industry has taken a massive step forward with directives by both the Office of the Comptroller of Currency (OCC) and the CFTC (Commoditites & Futures Trading Commission). The OCC has laid out guidelines whereby fintechs can now receive a specialty license enabling them to fall under federal jurisdiction, rather than having to file in every state they do business. This of course was met with displeasure by a national banking industry group - not surprising - but we wholly endorse the idea. Separately, the CFTC is also moving forward and has instructed its internal team to explore ways the agency can promote fintech to the multi-trillion dollar derivatives market. FintekNews is thrilled to see both actions, while remaining cautiously optimistic, knowing that federal bureaucracies can also mean burdensome regulatory control.

(Cindy Taylor/Publisher)

"Fintech got a thumbs-up from regulators on Wednesday, as a long-awaited national banking license for financial-technology firms took shape and the head of the Commodity Futures Trading Commission said he was moving quickly to see what the agency could do to foster the emerging industry.

The Office of the Comptroller of the Currency, the regulator of national banks, pressed ahead with its plan to offer a specialty license to fintech firms, a move that would allow the emerging industry to enter the federal banking system.

The regulator laid out its licensing manual, which would allow fintech firms such as online lenders and payment processors to apply for a federal charter instead of going through the more cumbersome route of applying with each state where they do business...

...“The OCC sets a dangerous precedent,” John Ryan, president and CEO of the Conference of State Bank Supervisors, said in a statement. “The OCC has acted beyond the legal limits of its authority, bypassed and ignored bipartisan objections from Congress, and created new risks to consumers and taxpayers.”

OCC officials have long disagreed, saying that the same protections will apply to fintech firms with a federal charter and that it has the jurisdiction to issue special licenses, as it did in the past for credit-card companies and banks that offer trustee services...

...Separately, J. Christopher Giancarlo, President Donald Trump’s pick to become permanent head of the CFTC—he is currently acting chief—said Wednesday that he has instructed his staff to examine the role the agency can play in promoting fintech in the multi-trillion-dollar derivatives markets it oversees."

Read Full Article at WSJ.com

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