Several of the largest banking and credit union trade associations in the United States have called on federal regulators to pause their review of national bank charter applications submitted by crypto firms such as Circle and Ripple. The request was made in a joint letter sent to the Office of the Comptroller of the Currency (OCC), warning that approving such applications could significantly alter longstanding regulatory practices. Banking Industry Raises Concerns Over Crypto Applications The letter, signed by a coalition led by the American Bankers Association, argues that the OCC should not move forward with evaluating the applications until key legal and policy issues are resolved. According to the signatories, the business models presented by the crypto firms are vague and lack the transparency needed for proper regulatory analysis or public review. The American Bankers Association (ABA) and several banking and credit union groups have sent a letter to the Office of the Comptroller of the Currency (OCC), asking it to delay the approval of national bank license applications from crypto firms like Circle and Ripple, citing… — Wu Blockchain (@WuBlockchain) July 21, 2025 A key concern involves whether the companies meet the criteria for obtaining national trust bank charters. Traditionally, this designation is reserved for institutions that engage in fiduciary services. The banking groups argue that core services offered by firms like Circle and Ripple, particularly crypto custody, do not satisfy these fiduciary requirements. They caution that moving ahead without full public consultation could result in regulatory inconsistency, and potentially allow firms with limited capital obligations to bypass decades-old financial oversight structures. Implications of a National Charter for Crypto Firms If granted, a national bank charter would allow crypto companies to operate across the United States under a single federal license, avoiding the need to apply for separate approvals in each state. While this would streamline operations for the applicants, it has raised concerns within the traditional financial sector. Critics argue that such a shift could create unequal standards, where crypto companies operate with reduced regulatory burdens compared to traditional banks. They also warn that allowing entry through trust charters could weaken overall financial safeguards and introduce new risks into the banking system. Custodia Bank founder Caitlin Long responded to the pushback on social media, noting that the reaction highlights regulatory imbalances. She suggested that if national trust charters offer lighter oversight, traditional banks might consider switching to those models to cut compliance costs. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Crypto Industry’s Regulatory Strategy in Transition The dispute reflects a broader trend in which digital asset companies are increasingly pursuing federal banking licenses to enhance credibility, expand services, and streamline compliance with evolving regulations. Firms like Circle, Ripple, and Fidelity are seeking to position themselves as key players in regulated financial markets. Legal analyst Logan Payne noted that new legislation , such as the GENIUS Act , which introduced a specialized license for stablecoin issuers, may be unintentionally encouraging companies to seek more comprehensive banking charters to maintain operational flexibility. Alexander Grieve, head of government affairs at crypto investment firm Paradigm, commented on the rare unity among traditional financial institutions. He stated, “Banks and credit unions rarely agree on anything. But they seem to agree that they’re finally about to have some competition from crypto.” The OCC’s decision on whether to grant federal charters to crypto firms like Ripple and Circle carries significant regulatory and competitive implications. As traditional financial institutions push back against what they see as a disruptive shift in oversight standards, the outcome will likely shape how digital asset companies engage with the U.S. banking system in the years ahead. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post American Bankers Association Moves Against Ripple’s Banking License appeared first on Times Tabloid .