Traditional banks want the American bank ruler to pump the brakes when approving charter applications from digital activa companies such as Ripple, Circle and Fidelity.
A group of Banking and Credit Union lobby associations wrote last week to directors of the Office of the Comptroller of the Currency (OCC) to comment on recent applications for Charter of National Bank of a whole series of digital asset-accommodation.
The lobby groups, including the American Bankers Association, urged the OCC to consider the applications.
“Based on the assessment by the associations of the limited information included in the public parts of the applications, the associations are of the opinion that there are significant policy and legal questions about whether the proposed business plans of the applicants include the types of fiduciary activities carried out by National Trust Banks.
The suitability of the trust charter for applicants is a material issue of public policy. The granting of these applications can represent a fundamental deviation from the existing OCC -PRECREDENTENT, and the associations are convinced that such a departure requires public input. “
The lobby groups claim that the public parts of the charter applications of Ripple, Circle, Fidelity Digital Assets and National Digital T CO do not offer “sufficient information for the public to assess or give the proposed business models and activities of the applicants.”
At the end of last month, the Stablecoin Giant Circle applied for a National Trust Charter for its proposed “First National Digital Currency Bank, after”, if approved, the bank would supervise the management of the USDC reserve on behalf of the American emitting Van Circle.
Ripple applied for a charter earlier this month, according to Brad Garlinghouse, the chief executive of the company. The application is part of the Push of the company on the Stablecoin market with Ripple USD (RLUSD), a Stablecoin supported by the US dollar published by Ripple on both the XRP whides and Ethereum (ETH) Blockchains.
Follow us on X, Facebook and Telegram
Don’t miss a beat – Subscribe to get e -mail notifications directly to your inbox
Check the price of the price
Surf the Daily Hodl -Mix
Generated image: midjourney