The American Bankers Association (ABA), the largest banking lobby in the United States, sent a letter to the Office of the Comptroller of the Currency (OCC) on July 23, demanding an immediate halt to all national bank charter reviews for crypto companies. Ripple, Coinbase, Circle and several other major crypto firms are directly impacted.
Why the ABA Pushes Back Now
The ABA explicitly stated in the letter that the OCC should not advance any crypto firm's bank charter application until Congress finishes writing the rules under which these companies will operate. The central piece of legislation is the GENIUS Act, a federal stablecoin law that requires five agencies — OCC, Treasury, Federal Reserve, FDIC and state regulators — to complete their own rulemaking before it can be fully implemented. The ABA argues this process is “likely still years away,” making it premature to approve charters based on compliance with an unfinished law.
“We urge the OCC to be patient, not measure its application decisioning progress against traditional timelines, and allow each charter applicant's regulatory responsibilities to come fully into view before moving a charter application forward,” the ABA wrote. The association also flagged insolvency risk: if a crypto firm with an OCC charter collapses, the OCC would be responsible for handling the fallout. They pointed to FTX, which misused roughly $8 billion in client funds, and Celsius, which had a $1.2 billion deficit on its balance sheet, as reasons the current system may not be ready.
Crypto Firms Directly Affected
Ripple tops the list. The OCC granted the XRP issuer conditional approval last month, which immediately drew opposition from the ABA. World Liberty Financial also filed to become a federally chartered national trust bank, a move that led Senator Elizabeth Warren to call for a halt. Other firms waiting in line include Circle, BitGo, Paxos, Coinbase and Nomura's Laser Digital.
Name Dispute: Can Crypto Firms Call Themselves “Bank”?
The ABA also pushed for a naming rule change: crypto firms that only handle trust or fiduciary activities should be barred from using “bank” in their name. The ABA argues that if such an entity fails, the “bank” label could mislead consumers and damage public confidence in the banking system. The OCC has not yet responded publicly to this proposal.
What Comes Next
With the regulatory framework still incomplete and traditional banking lobbies pressing the OCC to slow down, the path to a national crypto bank charter just got much harder. Analysts say a pause could slow expansion plans, limit access to certain federal banking privileges, and delay partnerships with traditional financial institutions. In the near term, affected firms may need to continue operating under state licenses or alternative structures. The OCC's next move will likely be shaped by input from industry groups, lawmakers and progress on federal rulemaking.