US Banking Groups Urge OCC to Delay Ripple, Circle, and Other Crypto Firms’ Banking Licenses
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The US banking groups have urged the Office of the Comptroller of the Currency (OCC) to delay its decision on granting national banking charters to crypto firms, Rippe and Circle. Agencies like the American Bankers Association, along with many other banks and credit union trade groups, raised concerns about the lack of transparency in applications submitted by both of the crypto firms.
US Banking Groups Urge OCC To Delay Crypto Firms’ Application
In a joint letter to the OCC on Thursday, the US banking networks urged the OCC to postpone its decision on crypto companies’ bank licenses. The US agencies argued that the applications from Circle Internet Group, Fidelity Digital Assets, and Ripple Labs did not provide enough information to assess their business model and operations.
This lack of transparency could lead to a shift in regulatory norms, impacting the digital financial space in the country. The groups argued, “There are significant policy and legal questions as to whether the Applicants’ proposed business plans involve the types of fiduciary activities performed by national trust banks.”
US Banks Warn: Lack of Transparency Could Pose As Material Risk
Additionally, the groups reiterated that the applications do not allow for public scrutiny. So if OCC changes its policy, the public will not be able to examine its procedure, leaving a trust issue. In their request, the agencies have warned that these crypto firms operating as national trust banks could expose the US banking and financial systems to material risks. These susceptible risks could also lead to disruptions in the financial landscape of the country.
US Anticipates More Crypto Firms to Seek Banking License
Crypto experts claim that the passing of the GENIUS Act will push more crypto firms to apply for a chartered banking license. As the US establishes a clear regulatory framework for the issuance of “payment stablecoin,” it has boosted confidence among crypto investors to expand their business with crypto licenses.
Logan Payne, a crypto-focused lawyer at Winston & Strawn, confirms this by stating that this charter license would allow the crypto firms to engage in a wider range of activities without the need for state-to-state licenses in the US.