OCC Approves Five Crypto Trust Banks, Facing Pushback From Bank Groups
Critics say the limited trust model invites regulatory arbitrage, with court challenges likely.
Overview
- The OCC on Dec. 12 issued conditional approvals for national trust bank charters to First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company.
- Comptroller Jonathan Gould defended the decisions as consistent with 2021 Interpretive Letter 1176, saying qualified applicants must be approved and that stablecoin reserves and custody can fit within trust powers.
- Bank trade groups including the ICBA and ABA argue the approvals stretch the charter beyond its statutory purpose, create opportunities for regulatory arbitrage, and heighten consumer and stability risks.
- State regulators at the CSBS warned that expansion into deposit taking, lending or payments could run afoul of state banking or money‑transmission laws for uninsured national trusts.
- Legal scrutiny and demands for greater transparency are expected as GENIUS Act implementation and practical questions such as access to payments infrastructure remain unresolved.