American Bankers Association Urges OCC to Delay Crypto Trust Charters Pending GENIUS Act Rules

The American Bankers Association (ABA) is calling on the Office of the Comptroller of the Currency (OCC) to pause approvals of new national trust bank charters for crypto and stablecoin firms until regulatory clarity improves under pending federal legislation.

Banking Industry Raises Concerns Over GENIUS Act Uncertainty

In a formal comment letter addressing the OCC’s proposed updates to national bank chartering rules, the ABA argued that applications tied to digital assets and stablecoins should not move forward while oversight responsibilities remain unsettled.

The group pointed specifically to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, noting that upcoming rulemaking could significantly alter compliance obligations for applicants. According to the ABA, advancing charters before those frameworks are finalized may create regulatory gaps and supervisory inconsistencies.

Safety, Oversight and Consumer Protection Risks

The association also warned that uninsured, crypto-focused national trust banks raise unresolved issues tied to capital standards, operational resilience, cybersecurity, and customer asset segregation. It further cautioned that certain charter structures could allow firms to sidestep scrutiny from the Securities and Exchange Commission or the Commodity Futures Trading Commission.

The appeal follows the OCC’s recent conditional approvals for five crypto-related trust banks, including entities affiliated with BitGo, Fidelity Digital Assets, Ripple, Paxos and First National Digital Currency Bank.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.