A second federal court has rejected a challenge to a proposed Fintech charter being considered by the Office of the Comptroller of the Currency. Under the proposal, a financial services business – such as a cryptocurrency exchange – could potentially apply for a national nonbank charter provided it did not accept deposits. With such a charter, a financial services business would be exempt from state obligations. In response, the Conference of State Bank Supervisors challenged the authority of OCC to grant such nonbank charters in a federal court in Washington, DC. The court rejected CSBS's challenge, however, claiming that the plaintiff had suffered no injury at this time, and that the lawsuit was premature as OCC has not yet taken any final decision on granting the relevant nonbank charter. A federal court in New York reached a similar conclusion in December 2017 in response to a lawsuit by the head of the New York Department of Financial Services, Maria Vullo. (Click here for details in the article, "Challenges to NY BitLicense and Potential OCC Fintech Charter Quashed" in the January 7, 2018 edition of Bridging the Week.)