Banking lobby urges OCC to address risks around crypto firm charters without deposit insurance

The American Bankers Association (ABA) has urged the Office of the Comptroller of the Currency (OCC) to halt the approval of national bank charters for digital asset firms until unresolved risks, particularly concerning receivership protocols and finalized federal oversight, are addressed. The ABA argues that the OCC should wait until the legislative timeline of the GENIUS Act is clearer, as current conditional approvals requiring future compliance are insufficient when full implementation is years away across multiple agencies. Furthermore, the lobby warned that relying on SEC oversight for some applicants would blur the lines between banking and securities regulation. The ABA also called for prohibiting trust companies that only perform fiduciary functions from using the word "bank" in their names to prevent consumer confusion. This push comes amid ongoing legislative debate over stablecoin yields, which some fear could cause significant deposit shifts away from traditional banks.

(Source：The Block)