The OCC's Chief Counsel stated on Thursday that the OCC is looking at launching a pilot program aimed at FinTech companies, intended in part to develop bank-fintech partnerships. By continuing in its ongoing efforts to become a primary regulator of FinTech companies, the OCC is effectively putting its feet on the accelerator in a game of chicken with state regulators.
As we previously discussed, state regulators already declared war over the OCC's efforts to regulate FinTech companies, both by suing the OCC and by publicly accusing the OCC of regulatory failures. The OCC has not backed down, instead seeking to dismiss these cases, as we noted earlier this week. The OCC's announcement concerning a FinTech pilot program is further evidence that it is not going to blink in response to efforts by state regulators. For now, the only clarity the FinTech companies have on this issue is that the increasingly fierce inter-governmental battle for regulatory jurisdiction is not going to end any time soon.
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