A leading association of state banking regulators is trying to put the US national banking regulator in its place on the issue of fintech registration.

As of December 22 Submit, the Conference of State Bank Supervisors, or CSBS, says Figure Technology’s forthcoming approval of Figure Technology’s bank charter is a bridge too far. Figure works blockchain-backed loans and investment services. It announced his application at the Office of the Comptroller of the Currency for a charter in early November. At the time, CEO Mike Cagney noted the relative convenience of a national charter, saying, “We will have more than 200 state licenses next year without such a charter.”

The OCC, the Ministry of Finance responsible for the national banks, was the first to put forward the idea of ​​a special purpose bank charters for fintech companies in 2016 under then-auditor Thomas Curry. State regulators, including the CSBS and the New York Department of Financial Services, or NYDFS, immediately pursued the proposal as violating the definition of “bank,” as well as in violating the OCC’s own charter. For example, the CSBS firmly refers to the work of the OCC as “the Nonbank Charter Program”.

From the perspective of the CSBS, the situation only got worse in July 2018, when then-controller Joseph Otting said the OCC was open to applications. CSBS filed another lawsuit later that year.

The court ultimately dismissed the case on the grounds that “CSBS still lacks prestige and its claims remain unripe”. In that ruling, however, the court attributed that “immaturity” to the fact that no fintech had yet applied for a charter, let alone received one.

A month later in the final verdict in the NYDFS case comes a judge in Manhattan found it that the OCCs legal authority “is brushed aside with regard to all fintech applicants seeking a national bank charter that does not accept deposits,” hitting the OCC.