The OCC conditionally approved five digital asset-focused companies for national trust bank charters, challenging claims that crypto cannot comply with regulatory standards. The move signals a broader regulatory shift and provides access to new products and services for consumers, while ensuring a competitive banking system. The approvals require meeting operational, governance, and compliance standards.

These firms, including Ripple National Trust Bank and First National Digital Currency Bank, will focus on custody, settlement, and digital asset infrastructure for institutional clients. The national charter streamlines regulatory oversight and provides nationwide authority for established players like Fidelity and Paxos. Newer entrants gain federal access without consumer banking exposure.

The OCC’s conditional approvals suggest a refinement of which crypto firm models gain entry, indicating a shift away from blocking such firms. The agency’s review of debanking practices by major US banks found inappropriate restrictions based on reputational concerns, affecting sectors like digital assets, firearms, and adult entertainment. The report focuses on bank-created policies, not a centralized directive to cut off crypto firms.

The review’s timeframe overlaps with the crypto downturn of 2022-2023, reflecting efforts to limit reputational-risk-driven exclusions. The approvals for compliance-focused trust bank models challenge claims of ongoing systemic exclusion by banks and trade groups. Federal access is expanding for these models, despite warnings of regulatory asymmetry.

Read more at Yahoo Finance: OCC Approves Five Crypto Trust Banks as ‘Debanking’ Claims Face Scrutiny