AFSA Releases Fintech Regulation White Paper

On October 3, AFSA’s State Government Affairs department released its October white paper on the ongoing evolution of the regulation of fintech companies. At a time when federal and state regulators debate how these emerging sources of consumer credit should be regulated, AFSA’s white paper examines the Office of the Comptroller of the Currency’s (OCC) proposed special purpose national bank charter for fintech companies and outlines the concerns raised by state regulators and fintech companies in response to the proposed charter.

The white paper also includes information on ongoing legal battles relevant to the regulation of fintech companies, including suits from the Conference of State Bank Supervisors and the New York Department of Financial Services challenging the OCC’s proposed charter and other cases regarding the “valid when made” doctrine. Finally, AFSA’s white paper looks at pilot programs launched at the state and federal levels to encourage innovation and create so-called “regulatory sandboxes” for fintech companies. AFSA remains committed to monitoring fintech regulation closely and will continue provide updates to members on any relevant developments.

AFSA’s State Government Affairs team publishes white papers monthly, and members can find previous papers on AFSA’s website under the SGA Resources section.