Crypto’s Quest for Bank Licenses Faces Unexpected Opposition
The post Crypto’s Quest for Bank Licenses Faces Unexpected Opposition appeared on BitcoinEthereumNews.com. Traditional banks call for more transparency before crypto firms get national charters. Crypto companies argue their licenses will streamline payment processing and custody services. Courts of law are in sight as banks argue on whether trust charters are similar to complete banking licenses. The US banking and credit union coalitions have officially written to the Office of the Comptroller of the Currency (OCC) requesting that it delay its decision-making on crypto companies that have applied to be licensed as banks. The coalition, which involves the American Bankers Association, claims that issuing national bank charters to businesses such as Circle Internet Group, Ripple Labs, and Fidelity Digital Assets will be a serious departure in decades-old banking rules. These cryptocurrency companies want to be accepted as national trust banks, and, in that case, they will be able to process payments quicker and be under the jurisdiction of the federal government all around the country. The traditional banking organizations, however, argue that the business models of the applicants are incompatible with the nature of fiduciary responsibility traditionally connected with the national trust banks. The banking groups underline that custodial services of digital assets do not involve a fiduciary activity and adopting this new model will threaten the integrity of the US banking industry. Banks Demand Transparency and Regulatory Clarity Banks are asking the OCC to give them more disclosures about crypto applicants before approving any charters. They claim that the existing information available in the public is not enough to enable any meaningful assessment or observation regarding the proposed business activities. The groups caution that allowing crypto companies to become national trust banks without seeking to play traditional fiduciary roles would be a significant policy change by the OCC, and it should not be allowed to move forward without…
The post Crypto’s Quest for Bank Licenses Faces Unexpected Opposition appeared on BitcoinEthereumNews.com.
Traditional banks call for more transparency before crypto firms get national charters. Crypto companies argue their licenses will streamline payment processing and custody services. Courts of law are in sight as banks argue on whether trust charters are similar to complete banking licenses. The US banking and credit union coalitions have officially written to the Office of the Comptroller of the Currency (OCC) requesting that it delay its decision-making on crypto companies that have applied to be licensed as banks. The coalition, which involves the American Bankers Association, claims that issuing national bank charters to businesses such as Circle Internet Group, Ripple Labs, and Fidelity Digital Assets will be a serious departure in decades-old banking rules. These cryptocurrency companies want to be accepted as national trust banks, and, in that case, they will be able to process payments quicker and be under the jurisdiction of the federal government all around the country. The traditional banking organizations, however, argue that the business models of the applicants are incompatible with the nature of fiduciary responsibility traditionally connected with the national trust banks. The banking groups underline that custodial services of digital assets do not involve a fiduciary activity and adopting this new model will threaten the integrity of the US banking industry. Banks Demand Transparency and Regulatory Clarity Banks are asking the OCC to give them more disclosures about crypto applicants before approving any charters. They claim that the existing information available in the public is not enough to enable any meaningful assessment or observation regarding the proposed business activities. The groups caution that allowing crypto companies to become national trust banks without seeking to play traditional fiduciary roles would be a significant policy change by the OCC, and it should not be allowed to move forward without…
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