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Big Banks Say ‘Not Yet’ to Crypto Firms
Crypto companies want to become banks. US banks aren’t happy about it.
The American Bankers Association and other finance groups told the OCC to slow down. They want more public info about crypto companies’ plans before decisions get made.
Circle, Ripple, and Fidelity Digital Assets are among those asking for banking licenses. If approved, these crypto firms could act like banks — settle payments faster and operate everywhere in the US.
Why Banks Are Nervous
Banks say approving these applications would change long-standing rules. They claim crypto firms aren’t offering true “fiduciary services.” That’s industry-speak for services where banks must protect other people’s money.
Crypto companies mainly handle digital assets, not old-school trust accounts. Banks say this isn’t what trust charters were meant for.
Potential Risks for the Financial System
The bankers warn: if crypto firms win, others might follow. That could cause bigger risks to the financial system.
Providing custody for crypto isn’t traditional banking, they argue. Granting these charters could create regulatory loopholes.
Crypto Fights Back
Caitlin Long from Custodia Bank called the bankers’ pushback “interesting.” She noted banks might soon regret this fight. If rules change, why wouldn’t banks switch to trust companies to dodge stricter requirements?
Even banks and credit unions — who rarely agree on anything — seem united on this. They don’t want crypto creeping onto their turf.
Stablecoins Are Pushing This Trend
Lawyer Logan Payne said new laws encourage stablecoin issuers to seek bank licenses. These licenses offer nationwide operation without needing state-by-state approval.
Crypto firms see this as a fast track to offering more services — not just stablecoins. That’s what has traditional banks sweating.
