US Regulator Opens Federal Banking Pathway for Crypto Firms
The Office of the Comptroller of the Currency is aggressively working to revitalize de novo bank chartering, opening doors for major cryptocurrency firms to become national banks. This initiative, aimed at bolstering the banking system, faces pushback from traditional banking lobbies concerned about stablecoin competition and regulatory oversight. Despite opposition, the OCC remains committed to fostering new bank formation and strengthening the federal banking system.
The US Office of the Comptroller of the Currency (OCC) is moving to revive de novo bank chartering, creating a clearer federal pathway for companies involved in cryptocurrencies, digital assets and other emerging technologies to establish national banks.
Comptroller of the Currency Jonathan V. Gould said a strong chartering process is essential to a healthy banking system and welcomed the Federal Deposit Insurance Corporation’s (FDIC) efforts to streamline its review of deposit insurance applications. The shift marks a significant departure from the regulatory environment of the past decade, when new federal bank charters became increasingly rare.
The OCC has received 40 de novo applications over the past 18 months, including applications for national trust banks, and has said it can issue decisions within about 120 days once applications are complete. Several major crypto companies, including Ripple, Circle, Crypto.com and Paxos, have received conditional approval for national bank charters, while Coinbase’s application remains under review and World Liberty Financial has also applied.
For these companies, a federal charter could provide a regulated framework for holding customer assets, facilitating settlements and offering custody services, although the applications have drawn resistance from traditional banking groups concerned about risk management, governance and competition.
The Independent Community Bankers of America (ICBA) and American Bankers Association (ABA) have urged the OCC to scrutinise or slow the approval of crypto-related charter applications, reflecting broader concerns within the traditional banking sector. A major area of tension is stablecoins, with banks arguing that crypto companies offering incentives to users could compete directly for deposits that traditional institutions depend on.
Despite the criticism, the OCC has signalled that it intends to continue encouraging new bank formation, potentially reshaping the relationship between regulated banking and the rapidly expanding digital-asset industry.