State regulators have withdrawn litigation to stop blockchain-based financial startup Figure Technologies Inc. from obtaining a federal bank charter from the Office of the Comptroller of the Currency.
The move announced Thursday by the Conference of State Bank Supervisors comes after Figure abandoned plans for its proposed bank to operate with uninsured deposits.
The company filed an amended application with the OCC in December with plans to take deposits that would be fully insured by the Federal Deposit Insurance Corp., according to a statement from the CSBS.
“The federal banking laws are clear. Financial service companies, like Figure, that send …