If you have searched, can crypto firms become banks? or national bank license for crypto companies, you are not alone. With the rising popularity of digital assets keywords like crypto regulation in the U.S., stablecoin issuer license and national trust bank charter are trending right now.
Here’s what’s happening and why it matters.
What Crypto Companies Are Doing
Big names like Circle, Ripple and Fidelity Digital Assets are applying for national trust bank charters. If approved, they’d be allowed to operate in all 50 states with just one federal license skipping the long, costly process of getting approval in each state.
But traditional banks see this as a serious threat.
Why U.S. Banks Are Objecting
In a formal letter to the Office of the Comptroller of the Currency (OCC), major banking groups including the American Bankers Association have asked the regulator to stop issuing these licenses.
“Granting national bank charters to firms that do not engage in traditional fiduciary activities goes against the intent of existing banking laws,the letter argues.
Merely storing digital assets does not constitute fiduciary activity.”
Their concern is that if crypto companies can get national bank status without doing typical banking functions like offering loans, managing assets, or holding trusts it could blur the line between banks and non-banking businesses. This, they argue, weakens the foundation of U.S. financial oversight.
The Crypto Industry’s Response
Not everyone agrees with the banks.
Custodia Bank founder Caitlin Long suggested the matter might “end up in litigation,” while Alexander Grieve from Paradigm made a strong point:
“You know the banks are scared when the ABA, the Bank Policy Institute, the Credit Union National Association, and the National Association of Federally-Insured Credit Unions all sign the same letter.”
Crypto advocates believe this resistance is about maintaining control, not public safety.
What’s Fueling This Push?
New bills like the GENIUS Act are pushing crypto firms to become licensed either federally or at the state level. But state-by-state approval is expensive and time-consuming. That’s why many firms are turning to national trust charters to simplify the process.
Stablecoin license requirements, digital asset banking laws, and crypto charter challenges are becoming highly searched terms reflecting growing public interest.
This ongoing battle between crypto and traditional finance is far from over. As more people search “how do crypto firms get bank licenses?” or “can stablecoin issuers get federal approval?”, one thing is clear: the rules of finance are being rewritten.
For now, the OCC is in the spotlight and how it responds will shape the future of digital banking in America.
Our Take
Traditional banks are clearly feeling the heat. As crypto firms push for federal charters, they’re challenging a system that’s been slow to adapt. The real issue? Power and access. Banks don’t want new players skipping the red tape they had to crawl through but that doesn’t mean it’s unfair. If crypto companies can meet regulatory standards without compromising security or trust, they deserve a seat at the table. Whether the OCC stands firm or folds to pressure will reveal how ready the U.S. really is for a digital financial future.
