U.S. Bankers Ramp Up Pressure: ’Show Us the Books!’ – Crypto Firms Face Transparency Ultimatum

Crypto's cloak of secrecy is under fire as traditional finance heavyweights demand radical openness. Wall Street's message? Put up or shut up.

The transparency showdown

Banking execs want real-time audits, clearer reserve proofs, and—ironically—more regulation for an industry built to bypass gatekeepers. The hypocrisy isn't lost on DeFi maximalists.

Trust but verify (with blockchain)

Ironically, the solution might lie in crypto's own tech: immutable ledgers that even bankers can't fudge. Now that's a plot twist worthy of 2025's financial circus.

Closing thought: Nothing terrifies old-money institutions more than an asset class where 'proof of reserves' isn't just marketing fluff—but math even their quants can't manipulate.

$3 and Circle. In a joint letter sent to the Office of the Comptroller of the Currency (OCC) on Thursday, the American Bankers Association, alongside several banks and credit unions, emphasized the lack of clarity in the understanding of these companies’ business models and operations. They argue that this lack of transparency could impair public oversight and potentially lead to shifts in regulatory standards, deepening existing trust issues in the financial system.

ContentsCall for Application Delays and Public ReviewExpected Increase in License Applications

Call for Application Delays and Public Review

The American Bankers Association expressed uncertainty over whether the applications from Circle Internet Group, Fidelity Digital Assets, and Ripple Labs included fiduciary activities typically conducted by national trust banks. They requested a delay in these applications and called for the process to be opened to the public. This move aims to allow for comprehensive evaluation of the applications’ scope and any changes in the OCC’s approach.

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The groups conveyed concerns that approving the licenses without ensuring transparency could expose the U.S. banking and financial systems to significant risks. These risks have the potential to cause disruptions in the nation’s financial framework. The letter highlighted the possibility of unanticipated fractures within the financial structure, underscoring the need for public scrutiny before any licensing approval.

Expected Increase in License Applications

Following the implementation of the GENIUS Act last week, experts anticipate a surge in banking license applications from cryptocurrency companies. The Act provides a clear framework for issuing payment stablecoins, likely boosting application interest. In this context, each decision made by the OCC will set a precedent for other companies.

Logan Payne, a crypto-focused attorney at Winston & Strawn, noted that the GENIUS Act allows companies to operate more broadly without needing state-based licenses. The broad scope of this authority raises apprehensions within the banking sector, prompting persistent calls for detailed scrutiny and public transparency throughout the process.

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