Major U.S. banking trade associations, including the American Bankers Association and Independent Community Bankers of America, have formally urged the Office of the Comptroller of the Currency to delay decisions on crypto firms’ applications for national trust or bank licenses. They argue existing filings leave “significant gaps” in public disclosures, and granting charters would mark a “fundamental departure” from traditional banking frameworks.
The lobbyists emphasize that crypto companies like Circle and Ripple engage in activities not historically tied to fiduciary responsibilities. They warn that misalignment between digital asset services and banking rules could undermine consumer protections, destabilize financial infrastructure, and open the door to copycat firms bypassing standard capital and reserve requirements.
They demand that the OCC either implement a full notice and comment rulemaking process or defer applications until operational, capital, and compliance plans are publicly vetted. Meanwhile, crypto incumbents contend such delays amount to protectionism and claim their models already include AML, KYC, and consumer security safeguards.
This clash underscores a pivotal shift crypto companies are now seeking full regulatory parity with traditional banks. Success or failure could influence retail adoption, institutional trust, and crypto innovation across jurisdictions.
Industry observers expect potential lawsuits or contested administrative appeals if OCC attempts to approve charters without satisfying lobbying demands. The outcome may redefine the boundary between fintech and banking, spotlighting whether novel digital asset services can coexist within legacy regulatory guardrails.
