The American Bankers Association today joined four banking and credit union associations in raising concerns about a push by digital asset firms to establish national trust banks, saying there are significant policy and legal questions as to whether the applicants’ proposed business plans involve the types of fiduciary activities performed by such banks.
In recent weeks, digital asset issuers Circle, Ripple and Fidelity Digital Assets have applied with the Office of the Comptroller of the Currency for trust charters. In a joint letter to the agency, the associations said a decision to grant the charters would represent a fundamental departure from OCC precedent: The public portions of the applications do not allow for meaningful public scrutiny, and broader change to OCC policy with respect to trust activities requires public scrutiny.
“Given these substantial concerns, and the policy, legal and commercial implications that chartering the applicants would have for the banking system, the associations urge the OCC to postpone consideration of the applications,” the associations said. “The delay should continue until such time as the OCC has released enough information concerning the applicants’ intended business plans, as well as other aspects of the applications, to inform the public’s review and interested stakeholder comment, consistent with the historical transparency of the OCC’s charter application review process.”
