Several non-banking companies, including GM, Stellantis, Circle, and Ripple, are applying for US banking charters, sparking concern among traditional banks. The FDIC is adjusting its processes to accommodate these new entrants, with GM, Stellantis, and Nissan seeking industrial loan company status. Meanwhile, crypto and fintech firms are pursuing national trust banking charters with the OCC, with a 70% increase in applications compared to the same period in 2024. Circle, Ripple, Wise, and Fidelity Digital Assets are among those seeking these charters, presenting unique challenges to the banking system. The Independent Community Bankers of America (ICBA) argues that granting charters to crypto firms violates the “separation of banking and commerce,” leading to conflicts of interest and dangerous concentration. A US Government Accountability Office report linked the failure of crypto-friendly regional banks to exposure in the crypto world. New legislation passed this week, known as the GENIUS Act, requires digital asset providers to hold a national trust bank charter. Major banks like JPMorgan are preparing for wider use of stablecoins, with CEO Jamie Dimon acknowledging the need to embrace them to compete in the payment space.

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