Crypto.com announced on Monday that it has received conditional approval to establish a national bank trust charter from the U.S. Office of the Comptroller of the Currency (OCC).
In their statement, they mentioned that, once fully authorized as a federally regulated institution, they would serve as a custodian throughout the U.S. with oversight from the OCC. The exchange initially submitted its application back in October, outlining plans to offer custody services for digital asset treasuries and exchange-traded funds.
“This conditional approval is the latest testament to both our commitment to compliance and to providing customers trusted and secure services they expect from Crypto.com,” stated Kris Marszalek, co-founder and CEO of Crypto.com.
Source
Source: Crypto.com
This approval follows the OCC’s conditional authorization for five national bank charter applications for Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos, signifying an important step in the United States regulator’s policies. Notably, Coinbase, which applied in October, declared it had “no intention of becoming a bank” if granted approval.
This month, the American Bankers Association urged the OCC to postpone new national trust bank charters for companies involved with digital assets until the framework for the payment stablecoin bill, the GENIUS Act, signed into law in July, is fully in place.
Critics have warned that each application review must follow strict safety and soundness standards, emphasizing that the OCC should not adhere to conventional timelines when making decisions on such applications.
Lawyer Eli Rosenberg from BairdHolm mentioned that due to the exclusion of state money transmission regulations from chartered trust companies, those with a national charter would likely avoid most state licensing requirements.
World Liberty Financial Under Review for Bank Charter Application
World Liberty Financial, a crypto company associated with U.S. President Donald Trump and his sons, has also sought a national bank trust charter through the OCC. This application would enable the company to issue and manage the USD1 stablecoin independently, rather than relying on third parties.
However, this application has drawn scrutiny from Massachusetts Senator Elizabeth Warren, who expressed concern over OCC head Jonathan Gould’s ability to impartially assess the application. Gould indicated that the review process would remain apolitical and nonpartisan.
