The American Bankers Association (ABA) is calling on the Office of the Comptroller of the Currency (OCC) to slow down the approval of national trust bank charters for crypto and stablecoin companies. The banking trade group says regulators should wait until the framework under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is fully clarified before moving forward.
In a recent comment letter responding to the OCC’s proposed rulemaking on national bank charters, the ABA raised concerns about regulatory uncertainty surrounding digital asset firms. According to the association, companies involved in stablecoins and other crypto activities are still subject to evolving oversight from multiple federal and state agencies. Until those obligations are clearly defined — especially under the upcoming GENIUS Act rules — the ABA believes charter approvals should be approached with caution.
ABA Warns of Regulatory Gaps in Crypto Trust Bank Charters
The ABA argues that granting national trust bank charters to uninsured, crypto-focused institutions presents unresolved safety and soundness risks. Key concerns include the segregation of customer assets, potential conflicts of interest, cybersecurity vulnerabilities, and operational resilience.
Another major issue raised is regulatory arbitrage. The association warned that some firms could use national trust charters to avoid registration and oversight by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). If crypto firms engage in securities or derivatives-related activities, they should not be able to bypass proper regulatory scrutiny simply by operating under a trust charter, the ABA noted.
The group is urging the OCC to be “patient” and avoid applying traditional charter approval timelines to digital asset firms. It emphasized that each applicant’s full regulatory responsibilities must be clearly understood before any approval is granted.
Additionally, the ABA called for greater transparency in how the OCC determines capital requirements, operational standards, and resilience measures in conditional approvals. The trade group also pushed for stricter naming rules. Specifically, it wants limited-purpose trust banks — which do not take deposits or engage in traditional banking — to be restricted from using the word “bank” in their names. According to the ABA, this would help prevent consumer confusion about whether these entities offer federally insured deposits.
OCC’s Recent Crypto Trust Bank Approvals Raise Industry Concerns
The ABA’s letter comes shortly after the OCC granted conditional national trust bank approvals to five crypto firms: Bitgo Bank & Trust, Fidelity Digital Assets, Ripple National Trust Bank, First National Digital Currency Bank, and Paxos Trust Company.
On December 12, 2025, the OCC allowed these companies to operate under a federal trust charter, enabling them to hold and manage customer digital assets. However, these institutions are not permitted to accept deposits or engage in traditional lending activities.
The banking industry remains cautious about this expansion into digital asset oversight. Beyond regulatory clarity, traditional banks are also lobbying Congress to address stablecoin-related concerns through broader crypto legislation, including the proposed Digital Asset Market Clarity (CLARITY) Act.
One of the key sticking points is yield-bearing stablecoins and affiliated rewards programs. The ABA argues that such products function similarly to bank accounts but are not subject to the same regulatory framework, capital requirements, or consumer protections as traditional banks. This, they contend, creates an uneven playing field and potential risks for consumers.
