Major Move for U.S. Crypto Regulation: Federal Trust Bank Status Granted
Five digital asset firms — Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos — have received conditional approval from the Office of the Comptroller of the Currency (OCC) to become federally chartered trust banks, marking a pivotal step to bring U.S. dollar stablecoin issuers under federal oversight.
Previously operating under state charters, these firms will transition to conditional federal status, gaining authority for fiduciary activities like digital asset custody once all requirements are met. Ripple CEO Brad Garlinghouse called it “huge news” for its $1.3 billion RLUSD stablecoin. Circle, Paxos, and BitGo highlighted enhanced safety, transparency, and support. The OCC also warned major banks against debanking legitimate crypto businesses, emphasizing potential penalties for noncompliance.
This signals growing federal embrace of crypto infrastructure.
