Crypto.com Receives Conditional Approval for National Trust Banking Charter
In a significant development for the cryptocurrency sector, Crypto.com announced on Monday that it has obtained conditional approval for a national trust banking charter from the Office of the Comptroller of the Currency (OCC). This new entity will operate under the name Foris Dax National Trust Bank, also referred to as Crypto.com National Trust Bank, and will be authorized to provide services such as the custody of digital assets, handling of staking custodial assets, and facilitating trade settlements.
CEO’s Commitment to Compliance
Kris Marszalek, co-founder and CEO of Crypto.com, expressed pride in this achievement, highlighting the firm’s dedication to compliance and the commitment to offering its customers reliable services. He emphasized that reaching this milestone is pivotal for the company’s goal of being a comprehensive custodian that meets the high expectations of large institutions under rigorous federal oversight.
Growing List of Cryptocurrency Firms
Crypto.com now joins a growing list of cryptocurrency firms, including Circle, Ripple, and Paxos, that have received similar conditional approvals from the OCC. Notably, applications have also been submitted by Coinbase and World Liberty Financial, which has garnered scrutiny due to its connections with former President Trump. Recent concerns raised by House Democrats regarding World Liberty’s application highlight potential national security issues linked to its ownership.
Regulatory Changes and Industry Concerns
The trend of applications is partly fueled by recent regulatory changes, including the OCC’s ruling in May that permits banks to hold cryptocurrency for clients and the enactment of the GENIUS Act in July, which introduces a regulatory framework for stablecoin transactions.
However, the traditional banking sector has voiced concerns, advocating for a more cautious approach to charter approvals to ensure robust safety standards. The American Bankers Association has been particularly vocal, calling for transparency in the OCC’s evaluation process.
Furthermore, ongoing discussions about the Clarity Act, which seeks to define the legal framework for cryptocurrencies, have revealed underlying tensions between traditional financial institutions and the burgeoning crypto market, particularly around the topic of stablecoin yields. As the market for stablecoins approaches a substantial $309 billion in circulating supply, the role of these digital assets in the broader financial landscape continues to gain prominence.
