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| PATRICK T. FALLON/Getty, Getty images; Tyler Le |
Palmer Luckey, the tech entrepreneur best known for founding Oculus and defense startup Anduril, is now venturing into banking and he’s bringing political muscle with him. His new project, Erebor, a digital-first, crypto-friendly bank, is making a bold claim in its fundraising memo: it expects to secure regulatory approval in under six months, thanks in part to Luckey’s deep political connections and direct access to key banking regulators.
A High-Stakes Bid for Speed
Erebor submitted its charter application to the Office of the Comptroller of the Currency (OCC) in June, telling investors it expects a decision by late 2025 an aggressive timeline in the tightly regulated U.S. banking sector. The bank is wagering that Luckey’s influence and Erebor's regulatory ties will make the difference.
“Palmer’s political network will get this done,” the memo states.
Luckey contributed over $1 million to Republican-aligned political candidates and committees last year, according to federal disclosures. That political capital is now being openly framed as an advantage for Erebor’s regulatory journey.
Connected Cofounders and High-Profile Backers
The memo also emphasizes one co-founder’s “unique connectivity to banking regulators,” specifically naming Jonathan Gould, who became Comptroller of the Currency in July. Gould previously held a senior OCC role under President Trump and briefly worked in the crypto space as chief legal officer at Bitfury. Most recently, he was a partner at Jones Day.
Further tightening the network, Adam Cohen, a former partner at Skadden who helped Erebor prepare its OCC application, recently joined the OCC as Gould’s chief counsel. In a LinkedIn post, Cohen thanked Gould for the opportunity, framing his move as a way to support innovation in the banking system.
Still, the OCC hasn’t issued any comment about Erebor’s application specifically. When asked about the situation, an OCC spokesperson simply reiterated that the agency “carefully considers every bank charter application” based on legal and regulatory criteria.
As of August 7, Erebor had not yet appeared in the OCC’s public charter database.
Political Influence or Just Optimism?
Venture capital powerhouses including Founders Fund (backed by Peter Thiel) and 8VC are among Erebor’s investors. However, a Founders Fund spokesperson downplayed their role, telling For local press the firm had “invested a relatively small amount ($1 million)” and is not involved in operations.
The optimism in Erebor’s projected timeline stands out. Experts told For local press that bank charter approvals typically take a year or more even for well-resourced, well-prepared applicants. Fintech startups face even more hurdles.
“Nine months would be a more realistic timeline,” said Todd Baker, a senior fellow at Columbia University and fintech consultant. “If this had happened three or four years ago, you might be looking at a year and a half or no approval at all.”
The Long Road Through the FDIC
Erebor also submitted its FDIC deposit insurance application on July 28, another essential step before opening its doors. According to OCC guidance, banks should wait for preliminary OCC approval before formally engaging the FDIC something Erebor said it would do in sequence.
But even the median timeline for FDIC approval in 2024 stands at 295 days, or almost 10 months, according to public records.
Michele Alt, a regulatory expert with Klaros Group, said the real challenge is not just getting the charter it’s standing up the actual bank. That includes everything from backend systems to meeting capital requirements and acquiring FDIC insurance.
“Standing up a bank typically takes longer than three months after conditional approval,” she said.
A Tricky Climate for Fintech Banks
Since 2017, the OCC has only approved one fintech bank in under two months. While some applications have met the agency’s 120-day review goal, many others have been withdrawn after extended delays.
Consider Varo Bank, which spent a reported $100 million and three years to win final approvals. Similarly, SoFi filed for a national charter in July 2020, later pivoted to acquiring an existing bank in 2021, and finally received conditional OCC approval in January 2022.
And yet, Erebor remains bullish. Its internal projections allocate less than four months for preliminary approval and about three months for final authorization a pace that banking veterans say would be highly unusual under normal circumstances.
The Trump Factor
One reason for Erebor’s optimism may lie in the broader regulatory environment. Under the Trump administration, many financial agencies have shifted toward deregulatory policies, favoring crypto and fintech innovation.
“The Trump White House has shown much stricter control over independent agencies than past administrations,” Baker said.
Indeed, for a tech-focused bank with conservative backers, this political climate may be uniquely favorable.
Still, regulators are known to issue follow-up questions that can delay or stall progress.
“It’s not a linear process,” said Paige Pidano Paridon, former Federal Reserve staffer and current co-head of regulatory affairs at the Bank Policy Institute. “There’s a lot of back-and-forth.”
Erebor’s fundraising memo makes clear that the bank sees political influence as a legitimate strategic asset something that has long been acknowledged behind closed doors, but rarely so explicitly in public fundraising documents.
Whether that access translates to an expedited charter remains to be seen. But as of now, Erebor is attempting to push through a highly complex regulatory process at breakneck speed while betting that its networks in Washington can clear the path.
