Federal regulators have granted preliminary approval to Erebor Bank, the crypto- and tech-focused financial outfit cofounded by Palmer Luckey and backed by Peter Thiel and Joe Lonsdale.

“I am committed to a dynamic and diverse federal banking system, and our decision today is a first but important step in living up to that commitment,” Jonathan Gould, the Comptroller of the Currency, said on Wednesday.

The green light is a necessary step toward opening. Erebor is the first bank to receive such approval since Gould was sworn in in July.

Luckey, who also co-founded autonomous weapons manufacturer Anduril Industries, helped start Erebor earlier this year. Thiel’s Founders Fund and Lonsdale’s 8VC have invested in…