Venable partner John Beaty was quoted in a November 6, 2016, American Banker article on the idea of fintech companies using a trust charter as an alternative to a proposed federal charter. A trust charter could allow fintech companies to operate in multiple states with just one state’s license. However, the idea faces several obstacles such as the ability of a fintech firm to act as a fiduciary and higher capital requirements.
"You'd be limiting yourself to doing, if not exclusively, primarily fiduciary activities" like being a trustee, executor and transfer agent, said Beaty. "None of those sound like virtual currency."