Wall Street Banks Weigh Lawsuit Over Crypto Banking Charters
The Bank Policy Institute, representing major Wall Street banks, is considering suing the Office of the Comptroller of the Currency (OCC) over its policy of granting federal banking charters to crypto and fintech firms. The OCC, under Jonathan Gould, has eased requirements for such firms to obtain national trust bank charters, allowing them to operate nationwide without the typical regulatory burdens faced by traditional banks. Firms like Circle, Ripple, and Crypto.com have received or sought these charters. Banks argue this move creates a two-tier regulatory system, giving newcomers advantages without equivalent oversight, which they claim blurs the legal definition of a bank and increases systemic risk. Legal experts warn this could undermine the credibility of U.S. banking regulation globally, especially as the U.S. is criticized for gaps in oversight compared to international standards. Banking groups like the American Bankers Association and the Independent Community Bankers of America urge the OCC to slow or reconsider these approvals, citing risks highlighted by recent crypto firm collapses. OCC’s Gould defends the policy as adapting to existing digital asset activity and maintaining relevance in the evolving financial sector.
