In a landmark decision for the digital asset industry, five prominent cryptocurrency companies have received conditional approvals to become federally chartered banks from the Office of the Comptroller of the Currency (OCC). This pivotal move brings major U.S. dollar stablecoin issuers under direct federal regulatory oversight, signaling a new era of institutional integration for crypto banking services.
Key Takeaways
- Regulatory Milestone: Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos have received conditional federal trust bank charters from the OCC.
- Stablecoin Oversight: The approvals mark a significant step in bringing major stablecoin issuers like USDC and RLUSD under federal supervision.
- Industry Shift: The OCC's move represents a notable shift from crypto resistance to a more accommodating regulatory stance under the current administration.
- Combatting Debanking: This development occurs alongside OCC actions against the systemic "debanking" of legal crypto businesses by traditional financial institutions.
The Approved Firms and Their Significance
The list of approved entities includes blockchain payment firm Ripple and Circle's First National Digital Currency Bank, the issuer of the USDC stablecoin. They are joined by custody specialists BitGo and Fidelity Digital Assets, as well as Paxos, a regulated blockchain infrastructure platform. These firms previously operated under various state charters, which are now being converted to a conditional federal status.
This surge in approvals is seen as a major turning point. OCC Acting Comptroller Jonathan Gould stated: "The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy." This reflects a broader shift in the agency's posture towards the digital asset sector.
What a Federal Trust Charter Means
If these firms successfully meet the OCC's expectations, they will permanently join approximately 60 other regulated institutions with national trust charters. These charters authorize fiduciary activities, primarily digital asset custody. However, national trust banks—a category that includes the first chartered crypto bank, Anchorage Digital—have certain operational limits. They do not offer the same full-scale deposit and lending services as the OCC's larger pool of national commercial banks.
Industry Reactions and Broader Context
Industry leaders hailed the decision as transformative. Ripple CEO Brad Garlinghouse called it "huge news" and a "massive step" for the firm's RLUSD stablecoin, while criticizing traditional bank lobbyists for "anti-competitive tactics." He challenged critics, asking, "What are you so afraid of?"
Circle emphasized that the charter would enhance the safety and oversight of the USDC reserve. Paxos noted its federally regulated platform would allow businesses to "issue, custody, trade and settle digital assets with clarity and confidence." BitGo CEO Mike Belshe declared this "marks an official end to the war on crypto and the beginning of the next era of innovation in banking."
This regulatory progress is set against a backdrop of long-standing challenges for crypto firms in accessing banking services, a practice known as "debanking." The OCC recently issued a report implicating the nine largest U.S. banks in this practice, warning of potential punishment for severing ties with legal business customers. The current administration has actively sought to reverse policies that adversely target cryptocurrency companies.
