The American Bankers Association (ABA), the largest banking lobby in the United States, has formally requested the Office of the Comptroller of the Currency (OCC) to immediately pause its review of national bank charter applications from cryptocurrency firms. This move directly jeopardizes the charter ambitions of major players including Ripple, Coinbase, Circle, BitGo, Paxos, and Fidelity Digital Assets.
In a comment letter dated February 11, the ABA urged the OCC to halt the process until Congress finalizes the regulatory framework under the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The association argued that approving charters based on compliance with an unfinished law is premature, as the rulemaking process involving the OCC, Treasury, Federal Reserve, FDIC, and state regulators is "likely still years away."
The banking lobby raised significant concerns over insolvency and systemic risk, citing the collapses of FTX (which misused roughly $8 billion in client funds) and Celsius (which had a $1.2 billion deficit) as examples of why the current system may not be ready to oversee crypto-native firms. The ABA warned that if a chartered crypto firm fails, the OCC would be responsible for handling the fallout, potentially harming consumers and the broader financial services industry.
Furthermore, the ABA pushed for a naming rule change, seeking to bar crypto firms that only handle trust or fiduciary activities from using the word "bank" in their names. They argue this could mislead consumers and damage public confidence in the banking system if such an entity fails.
This resistance follows recent OCC actions that triggered the backlash. In December 2025, the regulator granted conditional national trust bank approvals to several firms, including Ripple—a move that drew immediate opposition. The OCC has also issued interpretive letters clarifying banks' roles in crypto transactions and a Notice of Proposed Rulemaking in January 2026 to allow national trust banks to engage in activities incidental to banking.
Banking groups, including the Bank Policy Institute, contend that limited-purpose charters create an uneven playing field, allowing crypto firms to access federal oversight and credibility without shouldering the full regulatory burden of traditional banks. In response, the crypto industry, represented by groups like the Blockchain Association, has labeled the ABA's efforts as protectionist, accusing traditional banks of attempting to preserve dominance and slow innovation.
