Major US banking and credit union associations have expressed their opposition to granting national bank charters to leading crypto firms, including Ripple and Circle. They are calling on the OCC to pause the process until greater transparency is achieved.
Banking Associations Call for Transparency
In a formal letter to the OCC, banking and credit unions associations urged a delay in approving charters, highlighting the lack of information about the applicants' business plans. The letter, signed by the American Bankers Association and others, warned that the OCC's actions could signify a major policy shift with potential long-term implications.
Crypto Firms Seek Full Banking Access
Several prominent digital asset companies, including Circle and Ripple, have applied for national bank charters with the OCC. If granted, these licenses would allow them to operate nationwide under a single federal license, bypassing the need for state-by-state approval.
Concerns Over Financial System Stability
Banking associations expressed concerns that granting such charters could pave the way for other companies, potentially reshaping the US banking system without comprehensive scrutiny. They argued that this poses a 'material risk' to the financial system, especially if companies with minimal capital requirements receive the same privileges as fully regulated banks.
While the OCC has not publicly responded to the request, the growing tension between traditional banking institutions and digital finance firms continues to rise. This issue may significantly impact the future of crypto regulation in the US.
