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US Crypto Scene Shifts as Crypto.com Receives OCC's Conditional Approval

Crypto.com has recently announced that it has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a federally regulated trust bank.

This new entity, named Foris Dax National Trust Bank, operating as Crypto.com National Trust Bank, will focus exclusively on digital asset custody and related services.

Notably, the bank will not engage in traditional banking activities such as accepting deposits or issuing loans, emphasizing its specialization in custody, staking, and trade settlement for digital currencies.

While Crypto.com currently operates under the regulatory framework of New Hampshire, this new federal charter will consolidate its institutional services under one national umbrella.

This development is particularly significant for institutional clients, including asset managers and ETF issuers, who favor custodians with federal oversight for easier compliance.

Crypto.com's move aligns with a broader trend where more crypto firms are seeking to establish themselves within a federal framework.

In December, several notable companies, including BitGo and Circle, also received similar conditional approvals for national trust banks.

The OCC's conditional approval is a noteworthy milestone, albeit not the end of the road, as it paves the way for enhanced regulation in the expanding cryptocurrency sector.

As this landscape evolves, the implications for institutional investment and market structure will undoubtedly be profound.

Investors and stakeholders will be keenly watching how Crypto.com and others implement their new regulatory frameworks moving forward.