Amidst the swirling tempest of the digital age, a coalition of venerable American banking institutions, akin to the landed gentry of old, have risen in opposition to the granting of a banking license to the upstart crypto custody firms. They argue, with a fervor reminiscent of the debates in the Duma, that the public, the true sovereigns of the realm, must have a voice in this pivotal shift in policy. This, as the cryptocurrency industry, a new and often misunderstood force, continues its inexorable march towards recognition in the United States, spurred on by the pen of President Donald Trump.
Crypto Custody: A Fiduciary Duty? Nay, Say the Banks!
On the seventeenth day of July, a quintet of banking associations, including the American Bankers Association (ABA), Consumer Bankers Association (CBA), National Bankers Association (NBA), America’s Credit Unions, and Independent Community Bankers of America (ICBA), submitted a joint missive to the US Office of The Comptroller of The Currency (OCC). Their plea? A thorough examination of the recent applications for the National Bank Trust Charter by crypto custody companies, lest the floodgates of change open too hastily.
Among the applicants, National Digital TR CO, Fidelity Digital Assets, NA, First National Digital Currency Bank, N.A., and Ripple National TR Bank, all seek the esteemed approval of the OCC to operate as national banks. The banking associations, however, find the applications wanting in terms of public information and clarity of intent. They lament the dearth of details, which, in their view, hinders the public’s ability to engage in meaningful discourse.
Thus, they beseech the OCC to shed more light on the business plans of these crypto custody firms and to extend the period for public discourse. They further contend that custody services do not align with the fiduciary responsibilities enshrined in the National Bank Trust Charter. To grant a banking license to such entities would, they argue, necessitate a public review period, akin to the public hearings of old.
However, the associations are steadfast in their belief that the National Bank Trust Charter should be reserved for institutions that bear the weight of fiduciary duty. They warn that the approval of these applications by mere crypto custody firms could have far-reaching policy, operational, and commercial implications for the American banking industry, akin to the ripple effects of a stone cast into a still pond.
In their statement, they caution:
Should the Applicants succeed in establishing themselves as national trust banks without primarily providing fiduciary services, but instead offering traditional banking services like payments, then, as the Associations foresaw in 2021, a horde of other companies will follow, posing a material risk to the U.S. banking and financial system.
A Crypto Market in Flux
As the ink dries on this missive, the total crypto market cap stands at a staggering $3.82 trillion, albeit with a slight decline of 1.03% in the past day. Bitcoin, the undisputed monarch of the crypto realm, commands a market share of 61.1%. Yet, the winds of change whisper of a potential shift, as the recent price dip and the surging altcoins suggest a possible weakening of Bitcoin’s dominance, heralding the dawn of a new altseason.
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2025-07-19 16:58