On March 9, 2021, the Second Circuit heard oral arguments in
connection with the New York Department of Financial Services'
("DFS") challenge to block the Office of Comptroller of
the Currency's ("OCC") special purpose national bank
charter ("fintech charter"). The lawsuit was filed in the
Southern District of New York in September of 2018, shortly after
the OCC made available its special purpose bank charter.
The fintech charter would allow certain non-depository fintech
companies to operate as "special purpose national banks"
under the National Bank Act ("NBA"), which is overseen by
the OCC without the burden of state-by-state regulation and
licensing. The OCC views deposit-taking as just one of the
activities undertaken by banks in the "business of
banking" under the NBA. However, critics, including the DFS,
argue deposit-taking is essential to the "business of
banking," which should preclude non-depository fintech
companies from obtaining national bank
