U.S. Banking Groups Urge OCC to Stall Ripple, Circle & Other Crypto Bank Charter Approvals

What’s the Issue

• Transparency Concerns: The public sections of Ripple and Circle’s applications allegedly lack sufficient details for meaningful review and commentary.
• Fiduciary Role Questioned: Crypto firms primarily offer custody and payment services, which critics say don’t meet the fiduciary standards usually required for trust banks.
• Risk to Banking Norms: Allowing non-bank models to hold national trust charters may prompt a wave of similar applications, challenging existing regulatory frameworks. 

Broader Implications

• Competitiveness vs. Stability: Crypto firms argue that charters allow faster stablecoin settlement, crypto custody, and operational efficiency. However, traditional banks warn these charters may erode customer protection standards.
• GENIUS Act Link: New stablecoin legislation encourages issuers to seek trust charters—but banking groups contend it shouldn’t bypass scrutiny or established bank requirements. 
• Potential Legal Showdown: Experts like Caitlin Long predict this dispute may result in litigation questioning whether trust charters can effectively serve as “de facto banks.” 

Coinccino Take

This moment represents a regulatory crossroads: crypto firms are pushing into traditional systems, while existing banks push back to defend fiduciary definitions, consumer protection, and financial stability. The OCC must carefully evaluate whether Ripple, Circle, and others are prepared to uphold these standards—or risk prompting a paradigm shift in U.S. banking policy.