Traditional banking advocates resist attempts by cryptocurrency businesses to secure national bank charters
In the realm of digital finance, the applications for national trust bank charters filed by Fidelity Digital Assets, Ripple, Circle, and National Digital TR CO are currently under review by the Office of the Comptroller of the Currency (OCC). These applications, submitted strategically in anticipation of the GENIUS Act, are yet to receive approval, with the review process being met with significant policy debate and regulatory caution.
The delay in approval stems from concerns about ensuring appropriate fiduciary roles, regulatory parity, consumer protections, and liability frameworks before nonbank digital asset firms operate as national trust banks. Industry groups such as the Independent Community Bankers of America (ICBA) and other associations have urged the OCC to postpone decisions on these applications, citing significant legal and policy questions, particularly whether these applicants' business plans align with the fiduciary activities typical of national trust banks.
The trade groups argue that the public portions of the applications lack sufficient information for meaningful public scrutiny, and a delay would allow the public to "meaningfully assess the Applications and the novel issues they present." This call for transparency is supported by Michele Alt, a partner at consulting firm Klaros Group, who agrees that this is a common practice and there's nothing nefarious happening.
The primary activities of a national trust bank involve custody or fiduciary activities on behalf of customers, similar to a trust company. However, unlike traditional banks, trust banks hold assets in trust and not on their balance sheets, which affects their capital requirements. For instance, Circle aims to strengthen USDC stablecoin infrastructure and provide custody services through its trust charter, subjecting it to OCC oversight and helping meet forthcoming regulatory standards like those proposed in the GENIUS Act.
The OCC's established policy does not involve publishing detailed application information for public review. Confidential parts of applications are protected from Freedom of Information Act requests and public disclosure to safeguard proprietary business information. The claims prioritization system in the resolution framework for uninsured banks, such as national trust banks, involves the OCC appointing an independent receiver.
The primary risk concerns for trust banks involve safeguarding assets, safeguarding against potential hacking vulnerabilities, and specific risks related to crypto assets. The ongoing review and input opportunity aim to balance innovation in digital finance with the preservation of regulatory safeguards.
As the review process continues, it is essential to ensure that the evolution of digital finance is guided by a robust regulatory framework that prioritizes consumer protection, financial stability, and innovation. The OCC's decision on these applications will undoubtedly set a precedent for the future of digital asset custody and related fiduciary activities.
[1] CoinDesk. (2025, July 1). OCC Delays Decision on National Digital Asset Bank Charters. [online] Available at: https://www.coindesk.com/business/2025/07/01/occ-delays-decision-on-national-digital-asset-bank-charters/
[3] The Block. (2025, July 1). Industry groups ask OCC to delay national trust bank charter decisions. [online] Available at: https://www.theblockcrypto.com/post/95021/industry-groups-ask-occ-to-delay-national-trust-bank-charter-decisions
[5] Finextra. (2025, July 1). Circle, Fidelity, Ripple and National Digital Trust Company seek national trust bank charters. [online] Available at: https://www.finextra.com/newsarticle/36165/circle-fidelity-ripple-and-national-digital-trust-company-seek-national-trust-bank-charters
- The delay in the approval of applications by Fidelity Digital Assets, Ripple, Circle, and National Digital TR CO for national trust bank charters, which include fintech companies and aim to operate in the finance and technology industry, is due to concerns about appropriate fiduciary roles, regulatory parity, consumer protections, and liability frameworks.
- As these applications, submitted strategically in anticipation of the GENIUS Act, undergo significant policy debate and regulatory caution, industry groups such as the Independent Community Bankers of America (ICBA) and other associations are urging the Office of the Comptroller of the Currency (OCC) to postpone decisions, citing legal and policy questions and a lack of sufficient information for public scrutiny.
