A coalition of major U.S. banking associations—including the American Bankers Association (ABA), credit union groups, and institutions like Bank of America—formally petitioned the Office of the Comptroller of the Currency (OCC) on July 17, 2025, urging delays in approving national trust-charter applications from crypto firms Ripple and Circle. The group cited insufficient transparency in public application materials, arguing they lack critical operational details needed to evaluate compliance with fiduciary standards and risk controls.
Banking representatives contend that granting charters for custodial and payment-focused services—without meeting traditional fiduciary thresholds—would mark a dangerous regulatory precedent, potentially undermining decades of banking safeguards. They emphasized concerns about financial stability, consumer protection gaps, and regulatory arbitrage risks, requesting a formal public comment period before any approvals.
The clash highlights deepening tensions between traditional finance and crypto firms seeking federal legitimacy. While Ripple, Circle, and BitGo argue charters provide regulatory clarity and market trust, banks fear accelerated approvals could let crypto firms bypass stringent oversight. The OCC now faces pressure to pause reviews, with its decision poised to shape the integration of digital assets into mainstream finance.