Crypto bank charters raise concerns in the banking community
As reported by Cointelegraph, the Bank Policy Institute, representing the interests of the largest US banks, is considering filing a lawsuit against the Office of the Comptroller of the Currency (OCC) over granting banking licenses to cryptocurrency companies.
Since December 2020, the OCC has granted conditional approvals for national bank charters to firms like BitGo, Ripple, Paxos, and Crypto.com. Other crypto companies, such as Zerohash, have also filed applications.
This decision by the OCC has raised concerns in the traditional banking sector. The banking lobby fears that granting bank licenses to crypto firms could pose risks to financial stability and open the door to violations of banking regulations.
It's worth noting that in 2021, the OCC also issued guidance for national banks, allowing them to provide services related to cryptocurrencies and blockchain. This decision also drew criticism from traditional banks, who fear increased competition from digital financial players.
Experts believe that the confrontation between the banking lobby and the regulator could lead to a lawsuit that will determine the limits of the OCC's powers over the cryptocurrency sector. This, in turn, could affect the further development of digital assets in the US.