At least 15 U.S. crypto and fintech firms have pending applications for trust charters with the OCC, encouraged by the Trump administration. The OCC process allows firms to bypass traditional banks, although no company has yet secured a Master Account. The White House is contemplating an executive order to consider crypto-native companies, hinting at future regulatory changes.
Recent developments reveal that at least 15 cryptocurrency and fintech companies in the United States are in the process of applying for trust charters with the Office of the Comptroller of the Currency (OCC). This increase in applications is largely attributed to the crypto-friendly stance of the Trump administration, which has encouraged innovation in the financial sector. Firms like Circle and BitGo aim to enhance their operations by integrating with traditional financial systems, while others are looking at OCC trust charters as a pathway to operate outside the conventional banking infrastructure.
The OCC process could allow cryptocurrency firms to bypass traditional banking systems and function with the same financial framework typically reserved for federally regulated depository institutions. However, it is important to note that, as of now, no cryptocurrency entity has successfully obtained a Master Account from the OCC, despite attempts from companies like Custodia Bank. Meanwhile, the White House is considering an executive order that mandates the Federal Reserve to assess the needs of crypto-native companies, indicating potential changes in the regulatory landscape.
Brian Brooks, who previously served as the acting Comptroller and was known for his pro-crypto policies, approved the first crypto trust charter for Anchorage and also granted preliminary approval to the stablecoin issuer Paxos in 2021. Jonathan Gould is a likely candidate for the OCC’s leadership, following Brooks. However, there has been no immediate response from the OCC regarding these developments. Traditional banks, such as Bank of America, continue to support the Federal Reserve, while the two-tier banking system is adjusting to accommodate the disruptive nature of cryptocurrencies.
