The American Bankers Association (ABA), along with several credit union and banking organizations, has formally requested that the Office of the Comptroller of the Currency (OCC) delay its consideration of national bank charters for crypto firms such as Circle and Ripple.
Request to Pause License Approvals
ABA expressed serious concerns regarding the lack of regulatory clarity and procedural consistency. In their letter, the organization emphasized the need for a "comprehensive public process" before granting national status to companies operating in digital assets.
Concerns about Regulatory Policy and Process
The key argument from ABA and its co-signers revolves around the lack of clear regulatory guidance on how crypto firms would operate under a national charter. They fear that without public input and transparent standards, these charters could sidestep important safeguards that apply to traditional financial institutions. Specifically, the groups worry about gaps in areas such as capital requirements, consumer protections, anti-money laundering standards, and supervisory oversight.
Ripple and Circle Under Review
While the letter does not mention specific firms in detail, the applications from Circle and Ripple, the companies behind USDC and XRP, are believed to be under OCC consideration. Both firms have been working to integrate more closely with the U.S. financial system. However, the resistance from banking groups indicates that the entrance of crypto firms into federally regulated banking may require more dialogue and regulatory clarity.
The appeal from American banking organizations indicates that the process of integrating crypto banks into the federal framework requires careful attention and a transparent rule-development process.
