Well, well, well! It seems that the biggest banking lobby in the US, you know, the folks who keep their money under a mattress instead of investing in the future, has decided to hit the brakes on those pesky crypto bank charter applications! They’re calling for the Office of the Comptroller of the Currency (OCC) to take a little nap before giving any thumbs up. Why? Because they’re waiting for the crystal ball of regulatory clarity to finally show up!
US Banks Press Pause on Crypto Charter Reviews
On a lovely Wednesday, the American Bankers Association (ABA) decided to throw a wrench in the gears and asked the OCC to put the brakes on reviewing national bank charter applications for crypto firms. They cited a whole list of reasons including emerging business models that are as confusing as a squirrel on espresso, the need for more transparency than a glass house, and a lack of finalized federal oversight. You’d think these bankers were auditioning for a role in “The Twilight Zone!”
In a letter that I can only assume was written in crayon to emphasize seriousness, the banking lobby urged the regulators to “ensure that robust, broadly applicable safety and soundness standards are well understood.” You know, just in case someone actually tries to make sense of this whole crypto circus during a “rapid innovation” period. Can’t have too much innovation without a good ol’ dose of confusion!
As reported by Bitcoinist, the OCC has already approved conditional bank charters for some fancy names like Ripple, Circle, BitGo, Paxos, and Fidelity. Now, there’s talk that this might muddy the waters of banking activities-like trying to make a smoothie with a rock.
The ABA is now saying, “Let’s all take a deep breath and wait until Congress makes sense of all this!” So, what’s the rush? Time is just a construct, after all.
They even suggested that the OCC should take its sweet time with applications so that everyone can fully understand their responsibilities. Because who needs speed when you can have endless discussions over coffee?
The banking association is also waving the red flag about safety measures, saying we need those protections in place from the get-go. It’s like they’re asking for a seatbelt on a roller coaster that hasn’t even left the station!
Not to be outdone, the Trump Family’s main crypto venture, World Liberty Financial, jumped into the fray by applying for a national trust charter in January. Meanwhile, Senator Elizabeth Warren sent a letter to Comptroller Jonathan Gould, asking him to pump the brakes until Trump steps back from his crypto escapades. Talk about family drama!
Moreover, the ABA wants the OCC to change the rules so that new charter applicants can’t mislead poor unsuspecting customers with names that sound more trustworthy than a used car salesman. No more calling yourselves banks if you’re just playing with trust company toys!
“Skinny” Accounts Clash
Oh, the plot thickens! US banks have recently expressed their disdain for letting crypto and fintech firms have a direct line to the Federal Reserve’s payment systems. In a joint letter worthy of a soap opera plot twist, the Bank Policy Institute, Clearing House Association, and Financial Services Forum demanded a 12-month waiting period before these firms can even think about applying for those accounts. Because who doesn’t love a good waiting game?
They argue that the Fed should keep the gates closed until those new stablecoin issuers can prove they’re capable of operating safely. Meanwhile, crypto firms are left to cozy up with partner banks like it’s a high school dance.
And let’s not forget the “skinny” master accounts proposal from October, which would let crypto companies sidestep all that butter-fingered intermediation. It’s as if the banks are throwing a tantrum because they don’t want to share their toys!
Just when you thought it couldn’t get more dramatic, Eleanor Terret’s reports indicate that tensions are rising between the banking sector and the crypto industry over everything from Stablecoin rewards to the skinny master accounts proposal. Who knew finance could be so… entertaining?
While the digital assets side was feeling like the cool kids at recess, the banking side was fretting that crypto’s “less robust regulatory status could pose a problem,” with Better Markets CEO Dennis Kelleher calling the proposal “a reckless giveaway.” Sounds like someone needs a hug!
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2026-02-13 07:11