US Banking Groups Demand OCC Halt Crypto Banking Licenses for Ripple, Circle & Others—What’s Their Real Fear?

Traditional banks are rattled—and they’re not hiding it. The OCC faces mounting pressure to slam the brakes on crypto firms like Ripple and Circle securing banking licenses. Here’s why the old guard is sweating.

The Power Play Behind the Scenes

Banking lobbyists are pulling every lever to delay what they see as an existential threat. Crypto-native banking? That’s a direct challenge to their iron grip on financial infrastructure.

Regulatory Chess or Desperation?

Claims of 'consumer risk' ring hollow when legacy banks rake in billions from overdraft fees. The real risk? Competition from firms that settle transactions in seconds—not days.

The Bottom Line

This isn’t about protection—it’s about preservation. The OCC’s decision could either prop up a creaking system or finally force banks to innovate. Guess which one they’re fighting for?

 The US banking groups have urged the Office of the Comptroller of the Currency (OCC) to delay its decision on granting national banking charters to crypto firms, Rippe and Circle. Agencies like the American Bankers Association, along with many other banks and credit union trade groups, raised concerns about the lack of transparency in applications submitted by both of the crypto firms. 

US Banking Groups Urge OCC To Delay Crypto Firms’ Application 

In a joint letter to the OCC on Thursday, the US banking networks urged the OCC to postpone its decision on crypto companies’ bank licenses. The US agencies argued that the applications from Circle Internet Group, Fidelity Digital Assets, and Ripple Labs did not provide enough information to assess their business model and operations. 

This lack of transparency could lead to a shift in regulatory norms, impacting the digital financial space in the country. The groups argued, “There are significant policy and legal questions as to whether the Applicants’ proposed business plans involve the types of fiduciary activities performed by national trust banks.”

US Banks Warn: Lack of Transparency Could Pose As Material Risk 

Additionally, the groups reiterated that the applications do not allow for public scrutiny. So if OCC changes its policy, the public will not be able to examine its procedure, leaving a trust issue. In their request, the agencies have warned that these crypto firms operating as national trust banks could expose the US banking and financial systems to material risks. These susceptible risks could also lead to disruptions in the financial landscape of the country. 

US Anticipates More Crypto Firms to Seek Banking License 

Crypto experts claim that the passing of the GENIUS Act will push more crypto firms to apply for a chartered banking license. As the US establishes a clear regulatory framework for the issuance of “payment stablecoin,” it has boosted confidence among crypto investors to expand their business with crypto licenses. 

Logan Payne, a crypto-focused lawyer at Winston & Strawn, confirms this by stating that this charter license WOULD allow the crypto firms to engage in a wider range of activities without the need for state-to-state licenses in the US.