Banks Lobby OCC for Caution on Crypto Trust Bank Charters

[lingriiddd]

Following recent conditional approvals of five crypto trust banks — including Bitgo Bank & Trust, Fidelity Digital Assets, and Ripple National Trust Bank — the ABA is pressing the OCC to slow future approvals until oversight rules under the GENIUS Act are finalized.

The trade group cited unresolved issues around customer asset segregation, operational resilience, and cybersecurity. It also highlighted the risk that crypto trust charters could be used to avoid SEC or CFTC scrutiny and urged more transparency in capital and operational standards for conditional approvals.

The ABA further called on regulators to clarify naming rules, ensuring entities not engaged in traditional banking do not mislead customers by using “bank” in their titles.

#DigitalAssets #CryptoBanks #OCC #StablecoinRegulation #BankingPolicy

[tradelikepro]

traditional banks really not loving the crypto trust bank wave huh