[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  GHAEX [@ghaexchange](/creator/twitter/ghaexchange) on x 6185 followers Created: 2025-07-21 06:36:41 UTC US Bank Lobby Urges Delay on Crypto Firms’ Bank License Applications Major banking and credit union associations in the United States, including the American Bankers Association, have formally requested that the Office of the Comptroller of the Currency (OCC) delay decisions on bank charter applications submitted by crypto firms such as Circle, Ripple Labs, and Fidelity Digital Assets. These traditional financial groups argue that the applications lack sufficient public information for meaningful review and feedback. They also claim that approving such charters would represent a major shift in regulatory policy, as crypto companies do not provide traditional fiduciary banking services. According to the lobbying groups, digital asset custody services do not meet the definition of core banking functions. They warn that granting national trust bank charters to crypto firms could create systemic risks and disrupt established norms within the U.S. financial system. In response, crypto advocates have criticized the move. Caitlin Long, founder of Custodia Bank, argued that if regulators block crypto-native companies, traditional banks could exploit the same loopholes by converting to trust companies while avoiding higher capital requirements. Alexander Grieve, policy head at Paradigm, pointed out that the banking industry's unified opposition reflects fear of competition from the crypto sector. This clash emerges in the wake of the recently passed GENIUS Act, which encourages stablecoin issuers to apply for federal charters—potentially allowing them to operate beyond state-by-state regulatory constraints and enter broader financial markets. The debate highlights rising tension between legacy financial institutions and emerging crypto players over the future of banking in a digitally native economy. XX engagements  **Related Topics** [currency](/topic/currency) [united states](/topic/united-states) [credit union](/topic/credit-union) [banking](/topic/banking) [Post Link](https://x.com/ghaexchange/status/1947183934170882525)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
GHAEX @ghaexchange on x 6185 followers
Created: 2025-07-21 06:36:41 UTC
US Bank Lobby Urges Delay on Crypto Firms’ Bank License Applications
Major banking and credit union associations in the United States, including the American Bankers Association, have formally requested that the Office of the Comptroller of the Currency (OCC) delay decisions on bank charter applications submitted by crypto firms such as Circle, Ripple Labs, and Fidelity Digital Assets.
These traditional financial groups argue that the applications lack sufficient public information for meaningful review and feedback. They also claim that approving such charters would represent a major shift in regulatory policy, as crypto companies do not provide traditional fiduciary banking services. According to the lobbying groups, digital asset custody services do not meet the definition of core banking functions.
They warn that granting national trust bank charters to crypto firms could create systemic risks and disrupt established norms within the U.S. financial system.
In response, crypto advocates have criticized the move. Caitlin Long, founder of Custodia Bank, argued that if regulators block crypto-native companies, traditional banks could exploit the same loopholes by converting to trust companies while avoiding higher capital requirements.
Alexander Grieve, policy head at Paradigm, pointed out that the banking industry's unified opposition reflects fear of competition from the crypto sector.
This clash emerges in the wake of the recently passed GENIUS Act, which encourages stablecoin issuers to apply for federal charters—potentially allowing them to operate beyond state-by-state regulatory constraints and enter broader financial markets.
The debate highlights rising tension between legacy financial institutions and emerging crypto players over the future of banking in a digitally native economy.
XX engagements
Related Topics currency united states credit union banking