A coalition of prominent U.S. banking groups is intensifying pressure on the Office of the Comptroller of the Currency (OCC), urging the federal regulator to delay decisions on granting national banking charters to cryptocurrency firms, specifically naming Ripple and Circle. Agencies including the American Bankers Association, alongside numerous other banks and credit union trade groups, have raised significant concerns about a perceived lack of transparency in the applications submitted by these crypto entities.
In a joint letter sent to the OCC on Thursday, July 17, 2025, the banking networks argued that the applications from Circle Internet Group, Fidelity Digital Assets, and Ripple Labs fail to provide sufficient information to adequately assess their proposed business models and operations.
"There are significant policy and legal questions as to whether the Applicants’ proposed business plans involve the types of fiduciary activities performed by national trust banks," the groups stated, emphasizing that this lack of transparency could fundamentally alter regulatory norms and potentially destabilize the U.S. digital financial space. They further contended that current OCC policy does not consider crypto custody as a fiduciary activity, suggesting that granting charters based on such services would represent a departure from long-standing precedent.
The banking associations reiterated that the publicly available details of these applications are insufficient for meaningful public scrutiny. They warned that if the OCC proceeds with a policy shift without adequate public examination, it could erode trust in the regulatory process.
In their formal request, the groups explicitly cautioned that allowing these crypto firms to operate as national trust banks could expose the U.S. banking and financial systems to "material risks," potentially leading to widespread disruptions in the country's financial landscape. They fear that approving these applications could set a precedent where companies could access federal banking system benefits without being subject to the full regulatory oversight that applies to traditional banks.
Despite this pushback from traditional financial institutions, crypto experts anticipate a surge in bank charter applications from digital asset firms, largely fueled by the recent passing of the GENIUS Act. This landmark legislation, which officially recognized stablecoins as legal tender in the U.S. and established a clear regulatory framework for their issuance, has significantly boosted confidence among crypto investors and companies looking to expand their operations with formal banking licenses.
Logan Payne, a crypto-focused lawyer at Winston & Strawn, confirmed that a national bank charter would provide crypto firms with the ability to engage in a wider range of activities without the cumbersome requirement of obtaining state-by-state licenses across the U.S. This streamlined regulatory pathway, combined with the new clarity around stablecoins, makes national charters an increasingly attractive option for crypto businesses aiming for deeper integration into the mainstream financial system.
July 2025, Cryptoniteuae