US Banks Push Back Against OCC Crypto Charters 🏦⚠️

The Office of the Comptroller of the Currency (OCC) recently granted conditional national trust charters to five crypto firms — Ripple, Fidelity, Paxos, First National Digital Currency Bank, and BitGo. The move allows these firms to operate with federal oversight while bypassing FDIC insurance and some traditional bank standards.

Banks’ Concerns:

Creates a two-tier banking system

Encourages regulatory arbitrage

Blurs the line between insured banks and crypto trust institutions

Potential risk to financial stability if a chartered crypto firm fails

Calls to Action:

ABA & ICBA urge the OCC to pause or rescind approvals

Highlight the lack of safeguards for consumers and systemic risk

Bottom line:

Crypto firms gain federal credibility, but banks warn that the current framework may weaken oversight and expose the system to unforeseen risks.

#Crypto #Banking #OCC #Ripple #Fidelity #Regulation