US banking lobby asks OCC to hold off on approving crypto firms’ banking charters

PANews reported on July 21 that according to Cointelegraph, the American Bankers Association, together with several banks and credit union groups, wrote to the Office of the Comptroller of the Currency (OCC) on July 18, requesting a delay in approving banking license applications from crypto companies such as Circle and Ripple. These institutions questioned the "fundamental deviation" from traditional policies of the trust bank model proposed by crypto companies, pointing out that their business plans lacked detailed information that could be evaluated by the public.

The focus of the dispute is whether the national trust bank license applied for by the crypto company is compliant. The banking group stressed that digital asset custody does not belong to the traditional trust business, and if approved, it will lead to problems such as unfair capital requirements. Caitlin Long, founder of the crypto bank Custodia, pointed out that the dispute may lead to litigation and questioned whether traditional banks may evade regulation by turning into trust companies in the future.