Alberts Explains What Special-Purpose Charters Will Mean for FinTech Companies
In December 2016, the Office of the Comptroller of Currency announced it would consider applications from FinTech companies to become special purpose national banks, a designation which would allow them to offer debit cards, loans and savings accounts to customers in all 50 states without having to obtain permission from each individual state. The special-purpose charters would also mean that FinTech companies would have to abide by the same host of regulations – including capital and liquidity requirements, among others – that traditional banks must adhere to.
Speaking to The San Francisco Chronicle, Jeffrey Alberts, Co-Chair of Pryor Cashman’s FinTech Group, predicted that FinTech companies that obtain special-purpose charters will be exceptionally appealing acquisition targets for larger, traditional banks: “Successfully complying with regulations will be considered a good thing.”
However, the significant time and cost required to comply with such regulations may prove more trouble than it’s worth for certain FinTech companies, particularly startups.
To read more about the impact of special-purpose charters on FinTech companies, view the full San Francisco Chronicle article.
More About Alberts’ Practice
A former U.S. Attorney, Jeffrey Alberts co-chairs Pryor Cashman’s FinTech Group and has extensive knowledge of the growing virtual currency sector and government efforts to regulate virtual currency companies.
He is frequently sought after by the media and industry organizations for his insights in these areas and is a participating attorney in the newly-launched Digital Currency & Ledger Defense Coalition (DCLDC), an organization which protects individual constitutional rights and civil liberties in connection with regulatory and law enforcement scrutiny on digital currencies and ledgers.
To learn more about Alberts’ work, please visit here.
