Quick overview

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Federal authorities have been urged by several major banking and credit union trade associations from the largest economy to pause their review of national bank charter applications filed by Circle and Ripple.

The request, along with a warning that approving such applications could significantly alter long-standing regulatory policies, was included in a joint letter addressed to the Office of the Comptroller of the Currency (OCC).

A coalition led by the American Bankers Association signed the letter, which argues that the OCC should not begin reviewing the applications until key legal and policy issues are resolved. The signatories claim that the business models of these crypto companies lack clarity and transparency, making proper public review and regulatory analysis difficult.

Concerns center on whether the companies meet the requirements for national trust bank charters, which have traditionally been limited to organizations providing fiduciary services.

The banking associations argue that Circle and Ripple’s core services—especially crypto custody—do not fulfill fiduciary standards.

They warn that moving forward without proper public consultation could cause regulatory inconsistencies and potentially allow companies with low capital requirements to bypass longstanding financial oversight systems. If granted, a national bank charter would allow crypto firms to operate across the country under a single federal license, eliminating the need to seek approval in each state. While this could streamline the process for applicants, it raises concerns within the traditional financial sector.