State, Federal Governments Clash on Fintech Oversight

What’s Next for Fintech Regulation: A Q&A With Manatt’s Anita Boomstein
– Corporate Counsel

Manatt’s Anita Boomstein, a partner in the firm’s global payments practice, was featured on Corporate Counsel in a Q&A on the conflict between federal and state regulators on financial technology oversight.

Boomstein noted that state governments think the Department of the Treasury’s attempt to create a special purpose national bank, designed specifically for fintech companies, would take away power from the states to regulate such an entity. Current state licensing laws give them the power to decide whether they have sufficient management and financial resources.

However, these concerns may be unfounded, Boomstein said.

“National banks must comply with consumer protection laws, such as fair lending laws. So although state regulators are being protective of their own citizens, there are still protections at a state level,” she said.

Read the article here