Despite a recent legal challenge, the Office of the Comptroller of the Currency is continuing to push for the legalization of regulatory charters for non-bank fintech companies.

The Comptroller of the Currency Joseph Otting said Tuesday that the regulator will continue to advocate for passage of the OCC’s special purpose fintech charter, despite a legal ruling to the contrary last month.

At a conference in New York, he reiterated the case for having nonbanks that offer banking services under regulatory oversight.

“It’s only been decided by one judge and the beauty of America is one person doesn’t get to decide the roles,” he noted. “I think we will be successful in this journey. We will appeal this decision.”

In October, the OCC fintech charter was struck down by the U.S. District Court for the Southern District of New York when it determined that the OCC did not have the authority to issue a charter for non-bank entities. The charter was described as controversial since it would give fintech firms access to the nationwide financial system without having to be licensed in all 50 states.

The OCC has yet to file the appeal.

Otting emphasized that although the number of new entrants to the banking system is an encouraging development, it’s crucial that they do so in a fair and regulated manner. As more fintech companies offer deposits and loans, Otting argued that it’s important to make sure there’s a clear set of rules for every company operating in the banking space. 

See also: Bank-fintech partnerships are a necessity, not a fad

Still, Otting reiterated that one court’s decision is not a final verdict on the matter, and he confirmed that the OCC will pursue all legal avenues for appeal.

Otting noted that continuing to pursue the special purpose charter will allow fintech companies to offer services and products across state lines. He acknowledged that it would put limits on fintech companies, but said allowing these entities to operate under banking regulation would foster more innovation in the industry, especially as more customers look to digital products and neobanks for their financial needs. 

“[Fintech companies] should be operating under a charter and with all the rules and regulations that come with that,” he said.