Catenaa, Thursday, July 24, 2025 – Leading American banking groups are urging the Office of the Comptroller of the Currency (OCC) to postpone decisions on trust bank applications from Ripple, Circle, and others until full business plans are disclosed and the public has the chance to review and comment on the policy implications.
Ripple and Circle, among several digital asset companies, have submitted applications to create federally regulated national trust banks in the US Circle, after its IPO, applied for a license to manage USDC reserves and institutional crypto assets.
Ripple filed to oversee its stablecoin operations and expand services under OCC supervision. Their proposed entities are First National Digital Currency Bank and Ripple National Trust Bank.
However, five major banking organizations — the American Bankers Association, America’s Credit Unions, Consumer Bankers Association, Independent Community Bankers of America, and National Bankers Association — argue that these models do not meet the legal requirement for national trust banks to primarily engage in fiduciary activities.
In a joint letter dated July 17, the groups warned that approving these applications would set a precedent where custody and payment services become the basis for granting trust bank charters. They caution this could create a regulatory loophole, allowing non-bank entities to access national bank benefits without the full regulatory oversight traditional banks face.
The letter states, “The suitability of the trust charter for the Applicants is a material question of public policy.” It calls for a transparent rulemaking process and public input before any major policy change.
The groups want the OCC to delay decisions to provide sufficient time for public assessment of the novel issues these applications present.
