Carroll Analyzes Changes to OCC Rule on Trust Bank Chartering in Law360
Stinson LLP attorney Audrey Carroll authored an article in Law360 examining the Office of the Comptroller of the Currency's (OCC) recent amendments to its national bank chartering regulation and the potential implications for FinTech and digital asset companies. Partner Heidi Wicker and attorney Matthew Grimaldi contributed to the piece.
The article explores how the OCC's revised rule on national trust company chartering fits within the broader, ongoing discussion on the authority of national trust banks to engage in nonfiduciary activities under the National Bank Act and contributes to the rise in national trust bank applications among FinTechs. Carroll highlights the tension between federal preemption and state oversight, noting that FinTechs and digital asset firms now have a potential pathway to operate under a federal charter while navigating existing state regulatory frameworks.
"By continuing to formalize and promote the position that national trust banks may engage in nonfiduciary activities related to trust operations, the OCC has provided an attractive alternative to certain FinTechs subject to existing state licensing regimes," Carroll writes.
Her analysis also addresses industry and state reactions to the revised rule, including concerns about regulatory arbitrage, the scope of permissible nonfiduciary activities, and potential disputes over federal preemption that may shape the future of national trust bank charters.
Carroll's practice focuses on complex matters in the areas of financial services, payments systems and virtual currency. She assists financial institutions and FinTech companies, including money transmitters, prepaid card issuers and online marketplace providers, in addressing regulatory and contractual matters.
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