The U.S. Will Regulate Some Fintech Companies Like Traditional Lenders
- OCC plans to invite firms to apply for federal bank status
- Designation would subject companies to rules of Wall Street
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Over the past decade, there’s been an explosion of Silicon Valley start-ups and technology companies that act like banks. Now, a key U.S. regulator is inviting them to be regulated more like traditional lenders.
The Office of the Comptroller of the Currency said Friday it plans to start accepting applications from fintech companies for a special charter that would formally subject them to federal banking rules. Companies that become chartered will get the benefits of being an established company in the eyes of the government. But they will also face anti-money laundering controls and consumer protections that apply to other lenders, the OCC said.