American banking groups have urged the country’s bank guard dog to postpone its decision on the banking licenses of crypto companies until more details on their plans are public, claiming that allowing the offers would be “a fundamental departure” of the current policy.
The American Bankers Association and other trade groups of banks and credit cooperatives declared Thursday in a letter to the office of the Currency Controller (OCC) that his approval of the Charters of the National Bank for transmitters of Stablecoin Circle an Internet group and Ripple laboratories “would raise important policy and treatment problems”.
“There are important political and legal questions as to whether the business plans proposed by the candidates involve the types of fiduciary activities carried out by national trust banks,” said groups.
Digital assets Circle, Ripple and Fidelity are part of a recent group of Crypto -oriented companies that have requested banking licenses from the OCC, which would essentially allow them to be their own bank, settle payments more quickly and be regulated at the federal level, allowing them to operate in all states.
Banks want a break from the green lightning charters for the crypto
The groups asked the WC to postpone its decision on the charter offers for cryptographic companies, claiming that the public parties of their requests “do not provide enough information for the public to assess or provide significant comments on commercial models and the operations offered by candidates”.
They added that the public should also be able to examine the WC if it allows applications, adding that it would be a departure of long -standing policy, because the commercial models offered by crypto companies “do not imply the types of fiduciary activities carried out historically by the banks of the national charter of trust”.
“Providing childcare services for digital assets is not a fiduciary activity, and the granting of charters where traditional trustee activity is absent – or, is at best secondary – would represent an important change in the WCI policy which should be carried out only by virtue of a public opinion and an appropriate commentary,” wrote the groups.
They said that if cryptographic companies were authorized to be national trust banks which provide “traditional banking services such as payments”, then other companies could follow, which, according to groups, would present a “significant risk for the American banking and financial system”.
“Interesting reaction” by banking groups
Caitlin Long, the founder of the banking bank focused on the cryptocurrency, posted on Saturday to X that the question of the group on the question of whether the trust charters can be used as “de facto banking charters” with a single fraction of capital requirements are “very likely to be disputes”.
“Interesting reaction of banking commercial associations to fight,” she added. “If what they fear happen ends up happening, then why would the banks simply convert to a trusted business and maintain their existing companies to a small fraction of capital requirements and regulations?”
The head of government affairs of the venture capital company, Alexander Grieve, said in response to the letter that “banks and credit cooperatives rarely agree on anything. But they seem to agree that they are finally about to have competition from the crypto. ”
Expect more cryptographic companies wishing banking charters
Logan Payne, a lawyer focused on Winston & Strawn Crypto, recently told Cointtelegraph that stablecoin laws newly adopted under the Engineering Act created an incentive for stablecoin issuers to request a banking license.
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A new stable license under the laws would limit the activity of a cryptography company to issue only stablecoin, but Payne said that “almost all stablecoin issuers in the United States delivering under American law are currently engaging in external activities at the scope of this license”.
He said that a stablecoin transmitter would need monetary transmission licenses at the level of the state to operate nationally, even with the new Genius Act license, creating an incentive for stable issuers to request a national trust bank from the WOT.
Payne said that the Charter “allows them to engage in the emission of Stablecoin more a wider range of activities, but without having to obtain state licenses in state.”
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