OCC Crypto Charter Sparks Clash Between Banks, Ripple and Circle

Banks Urge Delay on OCC Crypto Charter for Ripple and Circle

Traditional Banks Urge Pause on OCC Crypto Charter Approvals

A group of leading U.S. banking and credit union associations, including the American Bankers Association, has urged federal regulators to delay decisions on making license applications submitted by major Virtual currency dealing firms like Circle and Ripple. In a letter to the office of the Comptroller of the Currency dated July 21, the groups argued that these applications raise “significant policy and process concerns.”

Source: X

Why Circle and Ripple Want Bank Licenses

Both Firms are applying for national trust bank charters (OCC Crypto Charter), a move that would allow them to operate across all 50 states, bypassing costly state by state licenses and gaining direct access to the U.S. financial system.

Circle, which issues the USDC stablecoin (with a circulatory supply of over 64.39B), wants to expand its role in digital payments and reserves.

Ripple, which facilitates blockchain-based remittances using XRP, is seeking to scale its regulated financial services, especially after recent regulatory clarity in the U.S.

With OCC Crypto Charter licenses, these platforms could act as full service banks, handling payments, custody, and settlement, by avoiding traditional banking capital requirements. 

Banking Groups Sound the Alarm

In the Letter, the traditional banks argue that these fintech firms do not perform fiduciary functions and their business models “lack transparency”. They also point to capital reserve concerns and consumer protection risks, especially as the digital currency market rebounds and total market cap approaches $3.9 trillion again. 

Source: CoinMarketCap

The groups stress that approving the applications without broader public input would be a major change in OCC policy, and open the gates for other fintech companies to follow.  

New Laws Add Pressure to Seek Federal Charters

The clash comes just after the GENIUS Act, signed into law on July 19, which created the first ever US federal framework for Dollar-pegged stablecoin regulations. But the act limits stablecoin firms to a narrow business scope, this is the leading cause that inspired digital asset firms to apply for OCC Crypto Charter, so they can operate across the country.

What’s Next? A Tipping Point for U.S. Finance

The OCC Crypto Charter showdown reflects a deeper shift: crypto is no longer a fringe experiment, it is knocking at the doors of the trillion dollar U.S. banking system. As the Comptroller Office reviews these applications, expect similar moves from other virtual economy dealing firms. Whether the regulator bends or holds the line could set the tone for the future of America Finance.