TLDR
US banking groups are asking regulators to slow or pause approvals of crypto-focused bank charters until new US digital asset rules are in place.
- The American Bankers Association (ABA) has urged the OCC to delay new national trust bank charters for crypto and stablecoin firms while GENIUS Act rules are clarified.
- Banks argue that current crypto charter approvals risk safety, consumer confusion, and regulatory arbitrage, especially around stablecoins and uninsured trust banks.
- For crypto firms like Ripple, Circle, Coinbase and others, this could delay bank-like status and Fed access, making upcoming US stablecoin and market-structure laws key catalysts to watch.
Deep Dive
1. What Banks Are Trying To Delay
The ABA, the largest US banking lobby, sent a detailed comment letter to the Office of the Comptroller of the Currency (OCC) asking it to slow or halt new national trust bank charters for crypto and stablecoin firms until regulatory obligations under the GENIUS stablecoin law are fully defined and implemented. The request specifically targets digital asset firms seeking limited-purpose national trust charters that give federal oversight for custody and fiduciary services without deposit-taking or lending.
This push comes right after the OCC granted conditional national trust charters to BitGo Bank & Trust, Fidelity Digital Assets, Ripple National Trust Bank, First National Digital Currency Bank and Paxos Trust Company, allowing them to custody digital assets under a federal framework while staying outside traditional banking activities. The ABA and others also want the Federal Reserve to impose a waiting period and tighter standards before crypto and fintech firms can access Fed payment accounts, according to coverage of their joint letter to the Fed.
Banks are trying to slow the pipeline that turns large crypto firms into quasi-banks with direct federal charters and, eventually, direct access to Fed rails.
2. Why The Banking Lobby Says It Is Worried
In its submission on the OCCs chartering framework, the ABA argues that crypto-focused national trusts raise unresolved questions about safety and soundness, operational resilience and wind-down planning, especially when they are uninsured entities holding customer assets. The group highlights concerns over segregation of customer assets, conflicts of interest and cybersecurity, and warns that trust charters could be used to sidestep SEC or CFTC rules when activities look like securities or derivatives.
Banks also focus heavily on stablecoins. They want the OCC to ensure that chartered firms comply with the GENIUS Act and related rules before getting approvals, and they are lobbying Congress via the Digital Asset Market Clarity (CLARITY) Act to curb stablecoin reward and yield programs they see as bank-like products without full bank regulation. Some letters urge the OCC to tighten naming rules so limited-purpose trusts cannot freely use the word bank, to reduce confusion around uninsured entities.
3. Impact On Crypto Firms And What To Watch
For major crypto companies, a national trust charter plus potential Fed payment access would reduce reliance on partner banks, strengthen institutional custody offerings and, for stablecoin issuers, formalize how reserves sit inside the banking system. The ABAs campaign does not cancel existing conditional charters, but it aims to slow further approvals and to add conditions tied to forthcoming GENIUS and CLARITY rulemaking.
Near term, that likely means a more gradual rollout of crypto banks and continued dependence on a mix of state charters, existing trust companies and intermediary banks. Medium term, the big swing factor is how US lawmakers and regulators resolve three issues: the final GENIUS rules for stablecoin reserves and yields, the CLARITY Acts treatment of stablecoin rewards and tokenized products, and whether the Fed offers relatively direct master account access to crypto-trust entities or keeps a tight gate.
Conclusion
US banks are using regulatory uncertainty around stablecoins and digital asset charters to argue for a slower, stricter approval process for crypto-focused trust banks. For crypto users and builders, this is less about an immediate price move and more about how fast US-regulated custody and stablecoin infrastructure can evolve, with upcoming GENIUS and CLARITY decisions likely to shape which firms gain durable bank-like status in the United States.
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