Bank of America Group urges the country’s banking regulator to postpone its decision to bank licenses for cryptocurrency companies until more details on its plans are public and claims that allowing bids will be “basically left” with current policies.
American Bankers Association and other banking and credit union trading groups explain In a letter to the Office of the Auditor General of Currency on Thursday, it approved the National Bank Charter to provide Stablecoin Issuer Circle Circle Group and Ripple Labs and others that “will cause significant policy and process issues.”
These organizations believe that: “There are significant policy and legal issues regarding whether the business plan proposed by the applicant involves the type of trust activities conducted by the National Trust Bank.”
Circles, chains and loyal digital assets are The recent group Apply for crypto-focused companies Bank License OCC can essentially make them their own bank, address payments faster and regulate at the federal level, allowing them to operate in every state.
Banks want to stop cryptocurrency chartering in green light
The groups asked the OCC to postpone its decision to bid for cryptocurrency companies, and claimed that the public portion of its application “has not provided the public with sufficient information to evaluate or provide meaningful comments on the applicant’s proposed business models and operations.”
They added that if the public allows the application, the public should also be able to review the OCC, adding that this would run counter to long-term policies, as the business model proposed by cryptocurrency companies “does not involve the types of trust activities that the bank has historically executed from the historically”.
“Providing custody services for digital assets is not a trust activity, and in the absence of traditional trust activities (or at most secondary), the granting of the charter will represent a significant change in OCC policy and should only be carried out in accordance with appropriate public notice and comment periods.”
They said that if cryptocurrency companies are allowed to be national trust banks that provide “traditional banking services such as payments,” other companies could follow, which said would present “material risks” to U.S. banks and financial systems.
“Interesting Reactions” from Bank Groups
Caitlin Long, founder of cryptocurrency banking Posted On Saturday X to X, the group’s question on whether a trust charter could be used as a “de facto bank charter”, while only a small percentage of capital requirements is “probably litigated.”
“The interesting reaction of the Bank Trade Association’s fight,” she added. “If they’re worried that what will happen eventually, why would banks not only convert it into trusting companies and put their existing businesses in a small part of capital requirements and regulations?”
Alexander Grieve, head of government affairs for venture capital firm paradigm, explain In response to “banks and credit unions rarely agree to anything.
Expect more crypto companies want bank rentals
Logan Payne, a crypto-focused attorney at Winston & Strawn, recently told Cointelegraph that the newly passed Stablecoin law provides incentives for Stablecoin issuers under the Genius Act Seek a bank license.
Related: “Crypto Week” will cause major changes: What will happen now?
The new stable license under the law will limit the issuance of Stablecoin by cryptocurrency companies only, but Payne said: “Almost every Stablecoin issuer issued under U.S. law is engaged in activities outside the scope of that license.”
He said that even with the new Genius Act license, Stablecoin issuers would need to operate a national currency transfer license nationwide, incentivizing Stablecoin issuers to apply for a national trust bank charter with the OCC.
Payne said the charter “allows them to conduct stable issuances and conduct wider activities without having to obtain a state-to-state license.”
Magazine: Crypto wants to overthrow the bank and is now in a fight at Stablecoin
