A federal bank regulator’s plan to begin processing applications to provide charters to payments firms has drawn opposition from state bank supervisors.

Acting Comptroller of the Currency Brian Brooks told Politico that the OCC would start processing applications for charters from payments companies as soon as today.

“We’ve satisfied ourselves that we don’t need a new regulation or a new statute on it,” Brooks said.

Receiving a charter would allow payments companies that do not take deposits to become part of the national banking system regulated by the OCC.

The OCC had previously faced opposition against a limited-purpose charter for fintech companies that did not hold deposits. The New York State Department of Financial Services and the nationwide Conference of State Bank Supervisors challenged the limited-purpose charter in court. A federal judge ruled last year that the OCC did not have the authority to issue national fintech charters. The OCC has appealed the court’s decision.

The CSBS said today that “the OCC’s proposed payments charter is no different than the fintech charter already rejected in federal court and subject to a nationwide order preventing the OCC from accepting applications from a company that does not take deposits.”

“State regulators are opposed to this unconstitutional expansion of power,” CSBS President and CEO John Ryan said in a statement. “While the OCC disregards the statutory limits of its authority as set by Congress and the rule of law in ignoring a federal court ruling, state regulators are focused on their responsibility to protect consumers and foster economic development across the country.”

Brooks, who took on the role of acting comptroller at the end of May, told Politico that the ruling against the fintech charter from the Southern District of New York does not apply nationally.

Several trade organizations on July 29 had sent a joint letter to Brooks opposing the OCC’s efforts to offer a narrowly focused payments charter and requesting an open and transparent process before considering a payments charter.

Signing the letter were the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Independent Community Bankers of America, National Association of Federally-Insured Credit Unions and The Clearing House. The organizations said issues relating to a payments charter would have broad implications for the banking system, adding that any changes should be “subject to robust public comment well before considering a new charter.”

“Answers to many difficult policy questions should be reached before considering any individual special purpose charter application, including how to ensure that regulations and consumer protection are applied evenly; what protections must be in place to preserve the existing separation of banking and commerce; and to ensure even application of OCC policy objectives, including those related to financial inclusion and CRA responsibilities,” the trade organizations said.