Major players in the crypto space, such as Ripple and Circle, secured preliminary approval from a leading U.S. banking regulator to create national trust banks. This significant development could enhance the integration of digital assets within the banking framework. The Office of the Comptroller of the Currency has conditionally approved two new national trust bank charters from Circle and Ripple. Additionally, applications from BitGo, Paxos, and Fidelity Digital Assets to convert state trust bank charters to national charters have also received conditional approval, enabling them to operate nationwide.
The regulator is yet to provide the final stamp of approval necessary for each of the trust banks to commence operations. If finalized, the national trust bank charters would enable companies to manage and hold assets for customers while facilitating quicker payment settlements. The license, however, does not permit the companies to accept cash deposits or issue loans. Anchorage Digital stands out as the sole digital asset firm holding a national trust bank charter. The OCC oversees a total of 60 national trust banks.
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,” stated Jonathan Gould. The banking sector has called on the OCC to deny multiple applications, contending that the charters would enable crypto firms to choose a less stringent regulatory framework, thereby increasing systemic risk. The Bank Policy Institute expressed in a statement that the decision to grant conditional approvals “leaves substantial unanswered questions,” particularly regarding whether the requirements for the companies will be customized to their specific risks.
U.S. President Donald Trump has aimed to significantly reform U.S. cryptocurrency policies following his efforts to attract funding from the industry during his campaign.