U.S. banking associations are calling on the Office of the Comptroller of the Currency (OCC) to postpone decisions regarding crypto bank licenses and stablecoin issuer charters. They emphasize concerns over regulatory precedents and inconsistencies with traditional banking standards.
The groups assert that granting charters without comprehensive public input deviates from OCC policy. Crypto firms’ business models fundamentally differ from traditional banking frameworks, and approving such charters risks setting problematic precedents.
Further objections highlight that crypto companies offering custodial services might bypass fiduciary standards required of regulated banks. The banking coalitions warn this disparity could potentially destabilize the U.S. financial system by creating uneven accountability.
Custodia Bank founder Caitlin Long countered these arguments, characterizing the opposition as an attempt to stifle competition under the guise of regulatory caution rather than addressing valid concerns.
a surge in applications for national bank charters, partly driven by the GENIUS Act’s stablecoin provisions, has intensified scrutiny. Banking groups caution that granting charters may impose unequal capital burdens on traditional institutions compared to crypto firms. This dialogue underscores the need for transparent regulatory processes to balance innovation with systemic stability.