The Office of the Comptroller of the Currency (OCC) today conditionally approved national trust bank charters for five digital asset-focused companies. This indicates that cryptocurrency firms are gradually entering the federal banking system.
This decision challenges claims in some sectors of the financial industry that cryptocurrencies cannot comply with regulatory standards. Meanwhile, within the cryptocurrency industry, it creates confusion around the existing claim that disconnection from financial services is being systematically pursued.
Five firms after approval
Including Ripple National Trust Bank, the OCC has conditionally approved licenses for four additional digital asset-specialized institutions. This signifies a broader regulatory direction, not just an exception for one entity.
In addition to Ripple, the OCC approved a new trust bank application from First National Digital Currency Bank. It also allowed Circle, BitGo, Fidelity Digital Assets, and Paxos to transition from state-level licenses to nationwide licenses.
All five approvals are conditional. Each institution must meet operational, governance, and compliance standards before final approval.
"New entrants into the federal banking sector are positive for consumers, the banking industry, and the economy." โ Jonathan Gould, OCC Comptroller of the Currency, press release. "They provide consumers with new products, services, and credit sources, making the banking system dynamic, competitive, and diverse."
The commonality among these companies lies in their business models and regulatory positions within the financial system.
None of these institutions plan to operate as comprehensive commercial banks offering deposits or traditional loan products. Instead, they focus on custody, payments, and digital asset infrastructure aimed at major institutional investors.
Nationwide approvals for existing major players like Fidelity and Paxos provide federal single supervision and nationwide authority. This replaces state-level dispersed supervision, streamlining regulatory communication for institutional investors.
For startups like Ripple National Trust Bank and First National Digital Currency Bank, the approval opens federal access without exposing them to consumer banking operations.
Taken together, these approvals indicate that the OCC is not blocking the entry of cryptocurrency companies but is discerning viable models for entry.
Debanking dispute commentary
In recent years, the debate over cryptocurrency 'de-banking' has intensified. It is often portrayed as a conflict between regulators, banks, and digital asset companies.
Cryptocurrency industry leaders have repeatedly claimed that banks have systematically restricted access to basic financial services under the encouragement of regulators. This assertion has spread alongside the term 'Operation Choke Point 2.0', with mentions of past regulatory crackdowns and ties to former SEC Chair Gary Gensler.
Banks and regulators rebutted this, stating that their decisions were based on risk management, compliance, and reputational concerns, not ideology.
These tensions resurfaced on Wednesday as the OCC released preliminary results regarding the investigation into de-banking allegations against the largest banks in the U.S.
De-banking occurred, but it was limited.
On December 10, 2023, the OCC concluded that major banks in the country had engaged in de-banking activities between 2020 and 2023.
The agency stated that banks have inappropriately distinguished between legitimate businesses and, in response to reputational concerns, have taken measures to restrict access or strengthen reviews.
Activities related to digital assets have been specified as affected sectors alongside firearms, energy, adult entertainment, and payday lending.
However, the OCC's analytical perspective is narrower than the industry's claim of 'Operation Choke Point 2.0'. This report focuses on policies or review processes created by banks themselves and does not view there as being central directives to block cryptocurrency companies.
These differences influence how the emerging debate is interpreted.
Much of the review period overlaps with the 2022-2023 cryptocurrency bear market and its aftermath.
This review was conducted under the leadership of Director Gould, who was appointed earlier this year by President Donald Trump. Gould described the results as part of an effort to limit 'weaponized finance and reputational risk-driven exclusion'.
Against this backdrop, the OCC's conditional approval for five cryptocurrency-centric trust banks raises questions about claims of systemic exclusion.
Even as banks and industry groups warn of regulatory imbalances, this approval demonstrates that federal access is expanding for compliance-focused trust bank models.
