The American Bankers Association has told the Office of the Comptroller of the Currency that a clear regulatory framework for stablecoins and digital asset activities is not yet established, so the process of approving cryptocurrency-related bank licenses should be slowed and safety and soundness standards fully understood and implemented. It also urged that nonbank trust companies be prohibited from using the term ‘bank’ to prevent market misrepresentation. The association notes that the OCC currently links license approvals to GENIUS Act compliance, but full implementation could take years and involves rulemaking across multiple regulators. Reportedly, cryptocurrency firms including Circle, Ripple, BitGo, Paxos, Coinbase, and Nomura’s Laser Digital have applied for or already obtained conditional OCC trust-bank licenses, and World Liberty Financial, linked to Trump, has applied for a license covering its USD1 stablecoin.
ABA Urges Slower Crypto Bank License Approvals Until Stablecoins Regulation Is Clear
The ABA asks the OCC to delay cryptocurrency bank licenses until a clear regulatory framework for stablecoins and digital assets is established and safety standards are understood.
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