US Banks Urge Regulator to Slow Crypto-Linked Charters Amid Rule Overhaul

Major U.S. banking trade groups are intensifying their pressure on federal regulators to decelerate the approval of bank charters for cryptocurrency-focused firms. This push comes as the Office of the Comptroller of the Currency (OCC) and other regulatory bodies undergo a comprehensive review of the rules governing digital assets and fintech integration into the federal banking system. Organizations such as the American Bankers Association and the Bank Policy Institute have raised significant concerns regarding financial stability and the potential for regulatory arbitrage. They argue that crypto-native firms seeking national charters must be held to the same stringent capital, liquidity, and consumer protection standards as traditional financial institutions to ensure a level playing field. The banking industry’s primary concern is that granting charters to specialized digital asset firms without equivalent oversight could introduce systemic risks and undermine the integrity of the federal reserve’s payment system. As the OCC re-evaluates its approach to ‘fintech charters’ under current leadership, the banking sector is advocating for a moratorium or significant slowdown on new approvals until a more robust and uniform regulatory framework is finalized. This lobbying effort represents a significant hurdle for crypto firms seeking to provide regulated banking services and further highlights the growing tension between traditional finance and the emerging digital asset sector.

Source: US Banks Urge Regulator to Slow Crypto-Linked Charters Amid Rule Overhaul