The New York State Department of Financial Services sued the Office of the Comptroller of the Currency in connection with its recent proposal to issue special purpose federal charters for financial technology firms. DFS claimed that OCC's determination was "lawless, ill-conceived and destabilizing of financial markets that are properly and most effectively regulated by New York State. The legal action was filed in a federal court in Manhattan. Separately state bank regulators also indicated they will renew litigation previously filed but dismissed as premature against the OCC over the same fintech charter. NY DFS and state regulators previously sued the OCC, alleging it had no authority to grant such charters that, it claimed, would be harmful to markets and consumers. The relevant federal courts hearing the lawsuits dismissed both actions as premature. (Click here for background regarding the states' banking regulators' prior action in the article “Federal Court Rejects States’ Challenge to Potential OCC Fintech Charter” in the May 6, 2018 edition of Bridging the Week; click here for details regarding NY DFS's prior action in the sub-article “Challenges to NY BitLicense and Potential OCC Fintech Charter Quashed” in the January 7, 2018 edition of Bridging the Week.)