US Banking Groups Urge OCC to Delay Decisions on Circle’s Bank License Amid Policy Concerns

Key Points

1. US banking groups argue that granting crypto bank charters without comprehensive public input would deviate from established OCC policy, as crypto firms' business plans do not align with traditional banking models.

2. The groups highlight concerns about crypto firms providing custodial services without adhering to the same fiduciary standards as regulated banks, potentially destabilizing the US banking system.

3. Caitlin Long, founder of Custodia Bank, criticized the banking groups' stance, suggesting it reflects resistance to competition rather than legitimate regulatory concerns.

4. The GENIUS Act's stablecoin provisions have increased interest in national bank charters among crypto firms, but banking groups warn of unequal capital burdens if such charters are approved.

5. The ongoing dialogue between banking groups and the OCC underscores the need for transparent regulatory processes to balance innovation with system stability.