Major US Banks Oppose Crypto Firms Receiving National Trust Bank Charters
A powerful US banking lobby group is reportedly considering legal action against the Office of the Comptroller of the Currency (OCC) over its decision to grant bank charters to several cryptocurrency companies. The group believes the move could introduce risks to the US financial system and reduce regulatory oversight.
According to a report by The Guardian, the Bank Policy Institute (BPI), which represents many of the largest banking institutions in the United States, is reviewing its legal options. Sources familiar with the matter say the organization is concerned that the OCC has ignored warnings from traditional banking groups while approving applications from crypto firms.
Since December, the OCC has issued conditional national trust bank charter approvals to several crypto-related companies, including BitGo, Fidelity Digital Assets, Ripple, and Paxos. These approvals allow the firms to operate as federally regulated trust banks, enabling them to offer services such as asset custody and trust management.
More crypto companies have also begun seeking similar approvals. Blockchain infrastructure firm Zerohash submitted its charter application on February 27, while companies like Crypto.com, Bridge, and Stripe received conditional licenses earlier in February.
Meanwhile, World Liberty Financial, a financial project reportedly backed by former US President Donald Trump, applied for a national trust bank charter in January as part of its plan to expand the use of its USD1 stablecoin. The application is still awaiting a decision from regulators.
Bank Policy Institute Warns of Oversight and Stability Risks
The Bank Policy Institute includes several major financial institutions among its members, such as Goldman Sachs, American Express, and JPMorgan. The organization has voiced concerns that granting national trust bank charters to crypto companies could create gaps in oversight compared to traditional banks.
A national trust bank charter issued by the OCC allows a company to operate as a federally recognized trust bank. These institutions can provide fiduciary services such as trust administration, custody services, and asset safekeeping, but they are not required to offer the full range of banking services that traditional banks provide.
Critics within the banking sector argue that this structure could allow crypto companies to access certain privileges of the banking system without being subject to the same regulatory requirements faced by full-service national banks.
Back in October, the Bank Policy Institute publicly urged the OCC to reject charter applications from several crypto firms, including Ripple and Circle. The group warned that approving such licenses could weaken regulatory standards and potentially expose the financial system to new risks.
Despite these concerns, the OCC continued to move forward with conditional approvals for multiple crypto firms, prompting the banking lobby to explore possible legal action.
However, the BPI has not yet made a final decision on whether it will file a lawsuit against the OCC. Representatives from the organization have not publicly confirmed their next steps.
The banking lobby has previously taken legal action against financial regulators. In late 2024, the BPI joined other business groups in a lawsuit against the Federal Reserve over its banking stress-testing framework. The Federal Reserve later agreed to review parts of the system, and the case was paused while discussions continued.
