Exclusive: Bank Policy Institute, representing lenders such as JP Morgan and Goldman Sachs, argues that new licenses could harm US consumers and financial system
Some of the largest US banks are considering suing their financial regulator, arguing that a new raft of licenses for crypto, payment and fintech could put American consumers and the wider financial system at risk.
The Bank Policy Institute (BPI), which represents 40 of the biggest US lenders including JP Morgan, Goldman Sachs and Citigroup, is understood to be weighing its legal options after the Office of the Comptroller of the Currency (OCC) failed to heed repeated warnings from influential banking groups and state regulators over its reinterpretation of federal licensing rules.
The OCC, which is led by Jonathan Gould, a Donald Trump appointee and former crypto executive, has effectively made it easier for crypto and fintech upstarts to secure and operate under a national bank trust charter, giving them the right to serve customers across all 50 states.
However, banks say giving these firms the OCC’s stamp of approval means letting firms loose into the US financial system without the same rigorous supervision and controls required of fully fledged banks.
