February 12 News, the largest lobbying organization in the U.S. banking industry—the American Bankers Association (ABA)—has submitted a comment letter to the Office of the Comptroller of the Currency (OCC), urging it to slow down the approval process for cryptocurrency-related licenses until Congress finalizes rules for stablecoins and digital assets. The association warns that prematurely approving new digital asset institutions to enter the national banking system could pose potential risks to financial stability and resolution mechanisms.
Currently, institutions such as Circle, Ripple, BitGo, Paxos, and Laser Digital (a subsidiary of Nomura Securities) are applying for or already hold conditional trust bank licenses from the OCC. World Liberty Financial, associated with former President Trump, has also submitted an application covering its $1 stablecoin. The ABA believes that, in the absence of finalized rules under the GENIUS Act and related regulations, the OCC should not proceed with traditional approval timelines.
Anthony Agoshkov, co-founder of Marvel Capital, pointed out that once these institutions obtain federal-level settlement and access rights, they could bypass traditional intermediary systems and achieve native, regulated value transfer. This is seen as a critical threshold for cryptocurrencies to mainstream into finance but also raises structural concerns among traditional banks.
The ABA specifically criticized the OCC’s practice of linking charter approval to compliance with the GENIUS Act, stating that full implementation of the law will take years and involves rulemaking by multiple regulatory agencies. The organization also cited the 2022 collapses of FTX and Celsius, warning that new business models, if they fail, could exceed the current resolution framework’s capacity.
Additionally, the ABA advocates banning non-bank trust companies from using the term “bank” to prevent public misunderstanding of their risk profile. Controversies over stablecoin yields continue to ferment at the legislative level, with the latest draft including a clause prohibiting crypto companies from paying any interest to holders. This change prompted Brian Armstrong to publicly oppose the legislation, claiming it “may be worse than the current situation.”
This battle over crypto licenses and stablecoin regulation is reshaping the institutional boundaries of the U.S. digital finance sector.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
CME Data: Probability of the Federal Reserve holding interest rates steady in March rises to 96.3%
Gate News Report, March 7 — According to CME "FedWatch" data, the probability of the Federal Reserve maintaining interest rates in March is 96.3%, while the probability of a 25 basis point rate cut is 3.7%.
GateNews3h ago
Chicago Federal Reserve President Goolsbee: The Federal Reserve is expected to start cutting interest rates by the end of the year
Gate News Report, March 7th, Chicago Federal Reserve Chair Goolsby stated that the Federal Reserve is expected to start cutting interest rates before the end of this year.
GateNews4h ago
Natixis Analyst: The Federal Reserve's March Meeting May Face Calls for Rate Cuts
Gate News Report, March 7 — Christopher Hodge from Natixis stated that the Federal Reserve may face calls for rate cuts at the March FOMC meeting. He pointed out that if the economic data for February shows weakness and January's data is revised downward, the Fed's decision to hold steady will be questioned by the market. He believes this situation will reinforce the dovish view that recent labor market data may just be "fool's gold" (appearing good on the surface but lacking real value).
GateNews5h ago
The probability of the Federal Reserve cutting interest rates in June has risen to approximately 50%
Gate News Report, March 7 — Traders now estimate the probability of the Federal Reserve cutting interest rates in June has risen to about 50%, up from just 35% before the employment data was released.
GateNews5h ago
Emphasize technological neutrality! The Federal Reserve: The capital recognition method for "tokenized securities" should follow that of traditional securities
The Federal Reserve and other agencies have issued new guidelines for the banking industry, requiring tokenized securities to follow the same regulatory capital standards as traditional securities, emphasizing that technological form does not affect the method of capital calculation. This reflects regulatory authorities' focus on the legal nature and risk assessment of financial assets, demonstrating the gradual integration of banks and blockchain finance, which helps banks evaluate the risks and costs of tokenization businesses.
区块客11h ago
U.S. non-farm payroll data below expectations, analysts say it provides a reason for the Federal Reserve to cut interest rates
Bokeh Capital Partners Chief Investment Officer Kim Forrest pointed out that the U.S. non-farm payroll data was below expectations, economic volatility has increased, layoffs are rising, and corporate personnel are overstaffed. She believes that the current economic measurement methods are insufficient to reflect the true situation and provide a basis for the Federal Reserve to cut interest rates.
GateNews16h ago
