A brewing regulatory clash is unfolding in Washington as major U.S. banking groups urge federal regulators to hit pause on crypto companies’ attempts to gain national trust bank charters.
In a letter to the Office of the Comptroller of the Currency (OCC), traditional financial institutions warned that fast-tracking approvals for firms like Circle and Ripple could undermine long-standing banking norms.
The concern centers on the lack of public transparency around the crypto firms’ business models. Banks argue that granting full federal charters—especially to entities that don’t perform fiduciary functions traditionally required of trust banks—would set a dangerous precedent and bypass critical oversight.
What’s at stake is more than just regulatory semantics. A charter would allow crypto firms to operate nationwide without state licenses, cutting compliance costs and allowing them to compete directly with banks in areas like payments and custody. Critics fear that this could allow companies to skirt capital requirements while expanding into traditional banking territory.
The pushback has sparked debate. Caitlin Long of Custodia Bank sees potential legal battles ahead, questioning whether trust charters are becoming backdoor bank licenses. Others note that this rare alliance between banks and credit unions signals genuine concern over crypto competition.
Meanwhile, new legislation like the GENIUS Act has incentivized stablecoin issuers to seek broader banking powers. Under the law, a stablecoin license is limited in scope, pushing firms to seek national charters for more operational freedom.
As the OCC weighs its decision, it’s clear the outcome could reshape how both crypto and traditional finance coexist in the U.S. regulatory landscape.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
Source: https://coindoo.com/crypto-firms-face-resistance-over-national-banking-license-plans/