Debate over banking charters for US crypto firms spreads… Wall Street banks consider legal action
Summary
- The Bank Policy Institute (BPI), which represents major Wall Street banks, is reportedly reviewing legal action in opposition to the US Office of the Comptroller of the Currency (OCC)’s policy to expand banking charters for crypto firms.
- The OCC said it has eased standards so that crypto and fintech firms can more easily obtain a national trust bank charter, enabling them to provide financial services across all 50 US states.
- With Circle, Ripple, Paxos, Crypto.com and World Liberty Financial applying for charters or receiving conditional approval, banks reportedly raised concerns that regulatory fairness could be undermined if the same capital regulations and supervisory standards are not applied.
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Major Wall Street banks are reportedly considering a lawsuit in opposition to a policy that expands federal banking charters for virtual asset (cryptocurrency) companies.
According to crypto-focused media outlet Decrypt on the 10th, the Bank Policy Institute (BPI), a lobbying group representing major Wall Street banks, is reviewing the possibility of filing a lawsuit over the Office of the Comptroller of the Currency (OCC)’s push to grant national trust bank charters to crypto and fintech firms. The dispute over access to the financial system between traditional finance and crypto companies is resurfacing.
The report said the OCC recently eased standards so that crypto and fintech firms can obtain national trust bank charters more easily. With such a charter, a firm can provide financial services across all 50 US states.
Circle, Ripple, Paxos, Crypto.com and World Liberty Financial, among other crypto firms, are reportedly applying for charters or have received conditional approval.
Banks, however, warn that the policy could grant crypto firms powers similar to those of traditional banks without imposing the same regulatory burdens. They argue that regulatory fairness could be undermined if the capital rules and supervisory standards applied to existing banks are not applied on the same basis.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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