Stop overpaying - start transferring money with Ogvio. Join the waitlist & grab early Rewards NOW! 🎁
ABA Urges OCC to Pause Crypto Firms’ Bank Licence Applications
Last Updated: July 21, 2025
✓ Fact Checked
Key Takeaways
- Bank and credit union groups urged the OCC to delay crypto bank licences citing lack of transparency and policy concerns;
- They argued crypto custody services do not align with trust bank duties and warned against changing OCC policy without review;
- Custodia Bank’s Caitlin Long said the dispute over trust charters may lead to court battles and shifts in traditional banking.
Several banking and credit union groups have asked US regulators to hold off on granting federal bank licences to crypto companies.
In a letter sent on July 17, the American Bankers Association and other trade groups urged the Office of the Comptroller of the Currency (OCC) to delay any decisions until more details about the applicants’ plans are made public.
The groups said the applications from firms like Circle, Ripple, and Fidelity Digital Assets raise legal and policy questions.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Cardano in Crypto? (Easily Explained!)
If approved, the licences would let these crypto companies operate as national banks, handle payments more quickly, and avoid having to get separate approvals in each state.
The groups, however, said the available information in the applications does not allow for proper review or public feedback. They also noted that the OCC itself should face more scrutiny if it decides to move ahead.
The letter stated that offering custody of digital assets is not a fiduciary activity, and granting charters where such services are not central would change OCC policy.
Caitlin Long, founder of Custodia Bank, stated in a July 19 post on X that the debate over whether trust charters are being used as a kind of bank licence with lighter requirements is likely to end up in court.
She added that if crypto companies succeed, traditional banks might switch to trust charters to lower their own costs and reduce their regulatory burden.
On July 14, three US federal agencies released a joint document warning banks about the risks of holding cryptocurrency for their customers. What did they say? Read the full story.
Loading...
The Most Liked Crypto News Findings
Looking for more latest crypto news on related topic? We have gathered similar news articles for you to spare your time. Take a look!
