US banking groups warn OCC crypto charters could weaken financial system

A coalition of major U.S. banking associations has strongly opposed the Office of the Comptroller of the Currency's (OCC) decision to grant national trust bank charters to cryptocurrency firms, BeInCrypto reported. The banking groups argued that these charters confer a bank-like status without FDIC deposit insurance and allow firms to evade capital and liquidity regulations, which could lead to consumer confusion and regulatory arbitrage. The protest follows the OCC's conditional approval of charters for five companies, including Ripple, Fidelity, Paxos, and BitGo, on Dec. 12. The agency stated that the crypto firms underwent the same rigorous review as traditional banks.