The OCC recently approved national trust charters for three crypto-focused applicants following ICBA opposition.
Recent Approvals: The OCC approved national trust bank charters for:
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Stripe’s application for a national trust bank charter for a proposed subsidiary, Bridge National Trust Bank.
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An application by Protego Holdings Corporation for its subsidiary, National Digital Trust Company.
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An application from Foris DAX—the parent company of Crypto.com—to form Foris DAX National Trust Bank.
ICBA View: ICBA has repeatedly reiterated concerns over chartering uninsured national trust banks that engage in non-fiduciary cryptocurrency-related activities without being subject to the Bank Holding Company Act and other prudential requirements that apply to FDIC-insured institutions.
Recent ICBA Advocacy:
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ICBA this month urged the OCC to withdraw its notice of proposed rulemaking on national bank chartering or issue an amended proposal that is consistent with its statutory authority.
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ICBA last month said the OCC should delay approval or substantive consideration of any pending national trust bank charter applications until the OCC has finalized the notice of proposed rulemaking concerning the scope of permissible activities for national trust banks under the National Bank Act.
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ICBA in December expressed opposition to the OCC’s conditional approval of five national trust bank charter applications from nonbank fintechs, including First National Digital Currency Bank.
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ICBA in November urged the OCC to deny the applications from Foris DAX, noting it would extend far beyond the charter’s intended purpose and create an unprecedented regulatory gap.
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ICBA in June voiced opposition to the Protego application, spotlighting the significant risks posed by its focus on digital asset custody.