Market News

US Regulators Face Pressure from Banking Lobby Over Charter Applications from Ripple and Fidelity

In a recent development, traditional banking institutions in the United States are urging regulators to pause the approval of charter applications from digital asset firms like Ripple and Fidelity.

A coalition, including the American Bankers Association, communicated directly with the Office of the Comptroller of the Currency (OCC) regarding their concerns.

The banking lobby argues that there are critical policy and legal issues to address before granting these charters, particularly concerning fiduciary activities associated with national trust banks.

They assert that allowing these applications could significantly alter existing OCC precedents, warranting an opportunity for public input.

Current public documentation related to the charter applications of Ripple, Circle, and Fidelity has been deemed insufficient for meaningful public assessment.

Circle recently applied for a national trust charter for its envisioned “First National Digital Currency Bank, N.A.,” aimed at managing the USDC Reserve.

In addition, Ripple's chief executive, Brad Garlinghouse, announced their application for a charter, signaling a move towards the stablecoin sector with Ripple USD (RLUSD).

This push from traditional banks reflects growing concerns regarding the integration of digital assets into the banking sector.

As the regulatory landscape evolves, the outcomes of these charter applications could have far-reaching implications for the digital asset industry.

Stakeholders are now awaiting the OCC's decisions, which could set a precedent for the future of digital banking in the U.S.