US financial institutions voice opposition to the granting of trust bank charters to Circle, Fidelity, and Ripple
The Office of the Comptroller of the Currency (OCC) is currently reviewing applications from crypto and stablecoin firms, including Circle, seeking national trust bank charters. As of July 2025, Circle has formally applied to establish "First National Digital Currency Bank, N.A.", a federally regulated trust institution that would hold both fiat reserves and crypto assets.
The OCC's review process is ongoing, with a public comment period for the applications still active. However, the banking associations have expressed concern over the lack of transparency in the process. According to reports, 90% of the content in the applications of Circle and Ripple was redacted.
The US banking associations, including the American Bankers Association, have written a letter to the OCC, expressing their concerns and requesting more information about the applicants' business plans and other aspects of the applications. They argue that the historical transparency of the OCC's charter application review process should be maintained.
The associations claim that these applications are attempts to become national banks through a backdoor path. They emphasize the need for transparency to build trust in the regulatory decisions and to clarify how stablecoin firms will be supervised relative to traditional banks.
The OCC's charter application review process typically allows for public comment and stakeholder input. However, the associations have requested the OCC to delay the process until sufficient information about the applicants' business plans and other aspects of the applications is released.
As the OCC continues to review these applications, the call for transparency from the banking associations is a significant development. The outcome of these applications could set a precedent for the regulatory framework of crypto and stablecoin firms, potentially paving the way for a clearer regulatory landscape in the digital asset space.
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The US banking associations have voiced concerns over the OCC's review process of crypto and stablecoin firm applications, particularly regarding the level of transparency and the redaction of significant parts of the applications. They argue that the applications are attempts to become national banks through a backdoor path. The associations have requested the OCC to delay the process until sufficient information about the applicants' business plans and other aspects of the applications is released. As the OCC continues to review these applications, the call for transparency from the banking associations is a significant development, potentially influencing the regulatory framework of crypto and stablecoin firms and shaping a clearer regulatory landscape in the digital asset space. For those seeking more in-depth insights and analysis, exclusive content is available only to Pro subscribers.
