US Regulator OCC Pledges to Boost Crypto-Friendly Bank Charters

The US Office of the Comptroller of the Currency (OCC) has announced its commitment to reviving de novo bank chartering, a process that has seen significant growth in recent years. In a statement, Comptroller Jonathan V. Gould emphasized the importance of de novo chartering as a sign of a healthy banking system. The OCC has received 40 de novo applications in the last 18 months, including from top crypto companies such as Ripple, Circle, Crypto.com, and Paxos.

Among those that have received conditional approval is Donald Trump-backed decentralised finance platform World Liberty Financial, which aims to get institutions on board with using its native stablecoin, USD1. The charter would allow these companies to hold client assets and handle trade settlement inside a federally regulated framework. For an exchange like Coinbase, whose application remains under review, it would mean serving as a crypto custodian on a federal basis.

However, not everyone is happy about the trend. Traditional banks have expressed concerns that stablecoins could erode their deposit base, and some have even urged the OCC to reject charter applications. The Independent Community Bankers of America in December argued that Coinbase's application for a national trust bank charter should be rejected due to its 'demonstrably flawed risk and control functions'.