Financial institutions want regulators to delay decisions on cryptocurrency banking plans
US banks and credit unions are pushing back against the growing influence of cryptocurrency companies by calling on federal regulators to delay approving banking charters for digital asset firms. In a letter sent to the Office of the Comptroller of the Currency (OCC), major banking groups, including the American Bankers Association, argued that granting national charters to crypto firms would be a major shift in policy and could carry significant risks.
The groups are particularly concerned about applications from firms like Circle, Ripple Labs, and Fidelity Digital Assets, which are seeking trust bank charters. If approved, these companies would be able to operate nationwide as federally regulated entities, essentially functioning as banks without needing licenses from each state. That, according to traditional financial institutions, could open the door to widespread competition from crypto firms that operate under lighter capital and regulatory requirements.
THIS ISSUE👇 of whether trust charters can be used as de facto bank charters (including making loans + obtaining Fed master accounts) at only 10-15% of the capital requirement of a bank is very likely to be litigated. Interesting reaction by the bank trade associations to… pic.twitter.com/ecKnyV1wur
— Caitlin Long 🔑⚡️🟠(@CaitlinLong_) July 19, 2025
The letter argues that current applications from these crypto companies lack transparency and don’t clearly explain their business models. The groups believe the public should have a chance to evaluate both the applications and the OCC’s decision-making process. They also questioned whether services like digital asset custody qualify as true fiduciary responsibilities, which are typically expected from national trust banks.
Critics say the opposition stems from fear of competition. Some analysts have noted that this rare alignment between banks and credit unions—two sectors that rarely agree—signals that they view crypto firms as a legitimate threat. Others suggest that the issue may eventually lead to legal challenges if regulators move forward.
Legal experts say that new stablecoin legislation, including the GENIUS Act, is likely to encourage more crypto companies to apply for charters that grant them broader operating freedom. Without them, firms would need licenses in each state, which many hope to bypass through federal approval. The debate over who gets to provide banking services is far from over.
