OCC urged to delay crypto bank approvals
Circle, Ripple, and others face opposition as they seek national bank charters to bypass state licensing.
Major US banking and credit union associations are pressuring regulators to delay granting federal bank licences to crypto firms. These include companies such as Circle, Ripple, and Fidelity Digital Assets.
In a joint letter, the American Bankers Association and others called on the Office of the Comptroller of the Currency (OCC) to halt decisions on these applications, raising what they described as serious legal and procedural issues.
The groups argue that the crypto firms’ business models do not align with the fiduciary activities typically required for national trust banks. They warned that granting such charters without clear oversight could mark a major policy shift and potentially weaken the foundations of the financial system.
The banks also claim the publicly available details of the applications are insufficient for public scrutiny. Some in the crypto sector see this as a sign of resistance from traditional banks fearing competition.
Recent legislative developments, particularly the GENIUS Act’s stablecoin framework, are encouraging more crypto firms to seek national bank charters.
Legal experts say such charters offer broader operational freedom than the new stablecoin licence, making them an increasingly attractive option for firms aiming to operate across all US states.
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