February 12 News, the largest lobbying organization in the U.S. banking industry—the American Bankers Association (ABA)—has submitted a comment letter to the Office of the Comptroller of the Currency (OCC), urging it to slow down the approval process for cryptocurrency-related licenses until Congress finalizes rules for stablecoins and digital assets. The association warns that prematurely approving new digital asset institutions to enter the national banking system could pose potential risks to financial stability and resolution mechanisms.
Currently, institutions such as Circle, Ripple, BitGo, Paxos, and Laser Digital (a subsidiary of Nomura Securities) are applying for or already hold conditional trust bank licenses from the OCC. World Liberty Financial, associated with former President Trump, has also submitted an application covering its $1 stablecoin. The ABA believes that, in the absence of finalized rules under the GENIUS Act and related regulations, the OCC should not proceed with traditional approval timelines.
Anthony Agoshkov, co-founder of Marvel Capital, pointed out that once these institutions obtain federal-level settlement and access rights, they could bypass traditional intermediary systems and achieve native, regulated value transfer. This is seen as a critical threshold for cryptocurrencies to mainstream into finance but also raises structural concerns among traditional banks.
The ABA specifically criticized the OCC’s practice of linking charter approval to compliance with the GENIUS Act, stating that full implementation of the law will take years and involves rulemaking by multiple regulatory agencies. The organization also cited the 2022 collapses of FTX and Celsius, warning that new business models, if they fail, could exceed the current resolution framework’s capacity.
Additionally, the ABA advocates banning non-bank trust companies from using the term “bank” to prevent public misunderstanding of their risk profile. Controversies over stablecoin yields continue to ferment at the legislative level, with the latest draft including a clause prohibiting crypto companies from paying any interest to holders. This change prompted Brian Armstrong to publicly oppose the legislation, claiming it “may be worse than the current situation.”
This battle over crypto licenses and stablecoin regulation is reshaping the institutional boundaries of the U.S. digital finance sector.
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