The American Bankers Association and other financial institutions express concerns over crypto firms' compliance with traditional banking policies, urging the OCC to reconsider charter approvals.
The American Bankers Association and several banks requested the OCC to delay bank charter approvals for crypto firms, citing significant deviations from traditional banking policies and insufficient public information. They raised concerns about digital asset custody's alignment with fiduciary roles, potentially increasing risks to the banking system. Caitlin Long, founder of Custodia, warned of possible litigation as traditional banks may seek to evade regulation by operating as trust companies.