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CUNA, NAFCU Warn Fintech Bank National Charter Would Violate Law

They say the company does not plan to be insured by any prudential regulator - a requirement for all national banks.

fintech bank on an iPad Source: Shutterstock.

Federal law prohibits the Office of the Comptroller of the Currency from issuing a national bank charter to Figure Technologies, a fintech company that offers financial services through blockchain technologies, credit union and banking trade groups have warned the agency.

The law “is clear that every national bank must be a member of the Federal Reserve System and every member of the Federal Reserve System must be an insured bank,” the groups, including CUNA, NAFCU and the major banking trades, said in a sharply worded letter to Acting Comptroller Brian Brooks. “Congress made the decision in 1933, over strident opposition, to provide deposit insurance on a mandatory basis. Only Congress can reverse that decision.”

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