The OCC has today granted conditional approval to five companies focusing on digital assets as national trust banks, signaling a considered but real expansion of cryptocurrency companies into the federal banking system.
The decision questions the banking industry's claims that cryptocurrency businesses would not be able to meet regulatory requirements. However, this development complicates the established narrative in the sector of a coordinated effort to prevent its access to financial services.
Five companies behind the approvals
Alongside Ripple National Trust Bank, the Office of the Comptroller of the Currency (OCC) conditionally approved four other institutions focused on digital assets, signaling broader regulatory changes rather than individual exceptions.
With Ripple, the OCC approved a new trust bank application for First National Digital Currency Bank and granted transitions from state licenses to national ones for Circle, BitGo, Fidelity Digital Assets, and Paxos.
All five approvals are conditional. Each institution must meet certain operational, administrative, and compliance standards before final approval.
"New entrants in the federal banking sector are a good thing for consumers, the banking industry, and the economy," said OCC Supervisor Jonathan Gould in a statement. "They provide consumers access to new products, services, and sources of credit, ensuring a dynamic, competitive, and diverse banking system."
The common factor for these companies is their business model and regulatory status in the financial system.
None of them intends to operate as full-service commercial banks offering deposits or traditional credit products. Instead, they focus on custody, settlement, and the infrastructure of digital assets designed primarily for institutional clients.
For established players like Fidelity and Paxos, the national license brings a single federal regulator and nationwide jurisdiction. This change replaces fragmented state oversight, facilitating regulatory-related activities on a large scale.
For new entrants like Ripple National Trust Bank and First National Digital Currency Bank, the approvals open federal-level access without consumer banking operations.
The approvals together indicate that the OCC is not blocking crypto companies but clarifying which types of business models are granted access.
Explanation of the debanking dispute
The debate over crypto 'debanking' has intensified in recent years and is often seen as a standoff between regulators, banks, and companies focused on digital assets.
Leaders in the crypto industry have repeatedly claimed that banks, incentivized by regulators, have systematically restricted access to basic financial services. This narrative has been linked to the label 'Operation Choke Point 2.0,' which has been compared to previous stringent regulatory actions associated with former SEC chairman Gary Gensler.
Banks and regulators have responded by claiming that decisions have been made based on risk management, compliance, and reputation-related concerns, not ideology.
These tensions resurfaced in discussions on Wednesday when the OCC released preliminary findings on alleged debanking at the largest U.S. banks.
Debanking was real, but limited.
In its review on December 10, the OCC noted that the largest banks in the country engaged in debanking practices from 2020 to 2023.
The agency reported that banks have made inappropriate distinctions between legal entities, restricting access or imposing enhanced scrutiny due to reputation-related concerns.
Digital assets were explicitly listed among affected sectors, along with weapons, energy, adult entertainment, and payday lending.
However, the OCC's examination perspective is narrower than the industry's 'Operation Choke Point 2.0' rhetoric. The report focuses on banks' own policies and escalation processes, not a centralized mandate to exclude crypto companies.
This difference is significant in the interpretation of the restarting discussion.
The majority of the reviewed period coincides with the 2022-2023 crypto downturn and its impact on banks.
The review was published under Gould's leadership, who was appointed by President Donald Trump earlier this year. Gould presented the findings as part of an effort to limit 'armed' economies and reputation-related exclusions.
Against this background, the OCC's conditional approvals for five crypto-focused trust banks complicate claims of ongoing systemic exclusion.
While banks and industry groups warn of regulatory imbalances, the approvals indicate that federal-level access is increasing for trust bank models emphasizing compliance.
