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Daniel P. Stipano quoted in Law360 article, “Fintech charter's fate still in air after CSBS suit dismissal”


Daniel P. Stipano

Daniel P. Stipano was quoted on September 6, 2019 in a Law360 article, “Fintech charter's fate still in air after CSBS suit dismissal,” which discussed the Conference of State Bank Supervisors’ suit against the Office of the Comptroller of the Currency, challenging its authority to grant specialized national banking licenses to fintech firms. The article stated, “A D.C. federal judge sided with the OCC on Tuesday and threw out a case brought by the Conference of State Bank Supervisors, or CSBS, that sought to shut down the fintech charter program the agency rolled out last year to give fintech firms an alternative to state-by-state licensing and regulation. CSBS alleged in its suit that the agency lacks authority to issue the charters and is unconstitutionally encroaching onto states' regulatory territory, but with no charters yet issued and no applications in the works, U.S. District Judge Dabney Friedrich decided the case wasn't ready to be heard.”

Stipano noted that he “doesn't expect to see any fintech charters handed out, let alone applied for, as long as these lawsuits stick around as threats. If you're the OCC, what you want to do is try to get these cases to the appellate level as quickly as you can, because that will give you the greatest chance to achieve some legal certainty in the short run.”

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