CSBS Files Lawsuit to Block Figure Technologies OCC Charter Application

The Conference of State Bank Supervisors filed a legal challenge specifically targeting the OCC's consideration of Figure Technologies' national bank charter application. Figure Technologies, a fintech company, had applied for an OCC charter as part of its strategy to offer financial services. The CSBS argued that the OCC lacked authority to grant such charters to non-traditional financial companies.

This lawsuit was part of a broader pattern of state regulator resistance to the OCC's fintech charter initiative. The legal action added another layer of uncertainty for fintech companies seeking direct banking capabilities rather than relying on BaaS partnerships with existing banks. The outcome would have significant implications for whether fintechs could obtain federal banking charters independently or would remain dependent on sponsor bank relationships.

The case highlighted the regulatory complexity facing any fintech seeking to move beyond a BaaS-dependent model to become a fully chartered institution.