Banking Groups Push Back as OCC Grants Conditional Trust Charters to Crypto Firms

Overview

• The OCC issued conditional national trust bank charters to several crypto firms, with coverage naming Ripple, Circle, BitGo, Paxos, and Fidelity.
• These limited-purpose trust banks cannot take deposits or obtain FDIC insurance, distinguishing them from full-service national banks.
• Leaders of the ABA, ICBA, and BPI questioned the approvals, citing consumer-protection gaps and blurred lines around core banking activities.
• Comptroller Jonathan Gould defended the approach as a way to bring crypto services under federal supervision and increase competition.
• Legal challenges are expected, as prior fights over fintech charters and the new GENIUS Act framework set the stage for a protracted process.