US Banking Lobby Pushes for Delay in Crypto Charter Approvals
- The American Bankers Association (ABA) has urged the Office of the Comptroller of the Currency to delay approving new digital asset firm charters until Congress finalizes related regulations.
- Several major crypto firms, including Circle, Ripple, BitGo, Paxos, and Coinbase, are pursuing or hold conditional OCC trust bank charters.
- The ABA highlighted concerns over resolution risk, citing past collapses such as FTX and Celsius as examples of potential regulatory challenges.
- The GENIUS Act’s incomplete implementation was criticized by the ABA as a reason to slow charter approvals.
- Banks have successfully lobbied to ban stablecoin yield provisions in recent legislative drafts.
The ABA is concerned about granting crypto firms federal access before regulatory frameworks are fully established, emphasizing potential risks to the financial system due to unresolved legislative issues like the GENIUS Act. The association’s pressure reflects an ongoing effort by banks to control crypto’s integration into federally regulated finance sectors.
Key takeaways include the ABA’s call for patience in charter approvals and its focus on ensuring robust safety standards amid rapid innovation in digital assets. (Source)
