The OCC today conditionally approved five companies focused on digital assets for national trust bank charters. This shows that crypto companies are slowly but surely entering the federal banking system.
The decision questions claims from parts of the banking sector that crypto cannot comply with regulations. But it also complicates the industry's own narrative about being actively blocked from financial services.
The five companies behind the approval
In addition to Ripple National Trust Bank, the Office of the Comptroller of the Currency (OCC) conditionally approved four additional digital asset-focused institutions. This shows that the OCC is making a broader regulatory effort and not just an exception.
In addition to Ripple, the OCC approved a new trust bank application from First National Digital Currency Bank. The OCC also allowed Circle, BitGo, Fidelity Digital Assets, and Paxos to change their licenses from state to federal level.
All five approvals are conditional, so each institution must meet certain operational, governance, and compliance requirements to obtain full permission.
'New entrants in the federal banking system are good for consumers, the banking sector, and the economy,' said OCC head Jonathan Gould in a press release. 'They provide consumers access to new products, services, and sources of credit and ensure that the banking system remains dynamic, competitive, and diverse.'
The common denominator for these companies is their business model and role in the financial system.
None of them want to run a traditional commercial bank offering deposits or traditional loans. Instead, they focus on custody, settlement, and digital asset solutions, primarily for institutional clients.
For established players like Fidelity and Paxos, a national charter only provides one federal regulator and the right to operate nationwide. This eliminates oversight from multiple states, making it easier to comply with regulations on a large scale.
For new players like Ripple National Trust Bank and First National Digital Currency Bank, this license grants access to federal level without needing to work against individuals.
Together, the approvals show that the OCC is not stopping crypto companies, but rather choosing which models are allowed in.
Debanking dispute explained
The debate about 'debanking' of crypto has grown in recent years. It is often seen as a conflict between regulators, banks, and companies within digital assets.
Leaders in the crypto industry have repeatedly stated that banks, with the support of regulators, have deliberately restricted access to basic financial services. This narrative has gained momentum and is often referred to as 'Operation Choke Point 2.0'. It is often compared to previous interventions in regulation, particularly associated with former SEC Chairman Gary Gensler.
Banks and regulators have responded, stating that they base their decisions on risk assessment, regulations, and reputation – not on ideology.
This tension arose again on Wednesday when the OCC published preliminary findings from its review of alleged 'debanking' by the country's largest banks.
Debanking was real, but limited
In the OCC's review on December 10, it concluded that the country's largest banks between 2020 and 2023 used 'debanking' methods.
The agency stated that banks made inappropriate distinctions between legal businesses, limited access, or imposed higher requirements, often due to reputation.
Businesses in digital assets were explicitly mentioned among the affected sectors, along with firearms, energy, adult entertainment, and payday loans.
But the OCC chose a narrower description than the industry's own words about 'Operation Choke Point 2.0'. The report emphasizes the banks' own policies and processes, not any central order to shut out crypto companies.
This distinction is important for how the ongoing debate is interpreted.
A significant portion of the reviewed period also concerns the decline in crypto during 2022–2023 and its effects on banks.
The review was released under Gould, who was appointed earlier this year by President Donald Trump. Gould has described the findings as a step to stop the 'weaponization' of finance and exclusion based solely on reputation.
Against this backdrop, the OCC's conditional approvals for five crypto-focused trust banks make it harder to claim that crypto companies are systematically excluded.
Even though banks and industry organizations warn that the regulations are different, the approvals show that federal authorities are allowing trust bank models that comply with the regulations.
