TLDR
- OCC head Jonathan Gould advocates for equal treatment of crypto firms in the bank chartering process.
- Gould emphasizes that crypto firms seeking charters should be evaluated the same as traditional financial institutions.
- He dismisses concerns from existing banks about the OCC’s ability to supervise new crypto-related activities.
- Gould highlights the OCC’s long history of chartering national trust banks, including those in fintech.
- Major crypto firms like Coinbase, Circle, and Ripple have applied for national trust bank charters with the OCC.
Jonathan Gould, head of the U.S. Office of the Comptroller of the Currency (OCC), has addressed complaints from bankers regarding crypto firms seeking national trust bank charters. Speaking at an event in Washington, he made it clear that digital asset companies should be evaluated just like traditional financial institutions. He emphasized that limiting crypto firms’ access to banking charters would restrict the evolution of the federal banking system.
OCC Maintains Equal Standards for Crypto Firms
Gould argued that the OCC’s long-standing history of chartering national trust banks should apply equally to crypto firms. He pointed out that digital asset firms seeking charters, including those in the fintech space, should not be treated differently from traditional banks.
“The activities proposed by some new charter applicants in the digital or fintech sectors are not new,” Gould stated. “Custody and safekeeping services have been carried out electronically for decades.”
He underlined that there is no reason to treat digital assets differently from these longstanding practices.
Despite concerns from traditional banks about oversight capabilities, Gould dismissed these claims. He reassured that the OCC has years of experience supervising crypto-native national trust banks. The agency’s ongoing interactions with banks on their own innovative initiatives also strengthens their confidence in managing new entrants and activities.
Crypto Firms Continue to Seek OCC Charters
Several major crypto firms have applied for national trust bank charters with the OCC. Coinbase, for instance, applied in October to expand its services under federal supervision. However, the exchange emphasized that it does not intend to become a traditional bank, even if it is granted the charter. The license would allow Coinbase to offer payment services without relying on third-party banks.
Other crypto companies, such as Circle and Ripple, have also filed similar applications. Circle aims to create a federally regulated entity, First National Digital Currency Bank, to provide crypto custody services. Ripple, on the other hand, seeks to bring its dollar-backed stablecoin, RLUSD, under federal oversight by acquiring a national banking license.
Despite pushback from traditional banks, Gould remains firm in his belief that digital asset firms should have the same opportunities as conventional banks. The OCC continues to evaluate the applications of these crypto firms as it works to balance the need for innovation with regulatory oversight.
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