As Ohio credit unions continue to navigate regulation to further help people and advance communities, U.S. Senator Sherrod Brown (D-OH) seeks to permanently close the fintech charter loophole. With Square recently becoming the first U.S. fintech company granted a banking charter, without the same capital and compliance standards as insured depositories, there is no longer equal regulatory oversight within the financial services industry. To assist Senator Brown in securing bipartisan support, the League recently teamed up with the Ohio Bankers League to urge Senator Rob Portman (R-OH) for equal regulatory oversight to preserve credit union and bank safety and soundness. Chartering fintechs under separate criteria adds additional unassessed risk to safety and soundness during a time of increased economic-financial uncertainty. The League will continue working with both Senators Brown and Portman to ensure credit unions can serve members under the same regulatory requirements as other financial service providers.
Read the joint letter and contact Chief Advocacy Officer Emily Leite for questions or more information on Senator Brown’s federal financial services priorities.