"The OCC, which is led by Jonathan Gould, a Donald Trump appointee and former crypto executive, has effectively made it easier for crypto and fintech upstarts to secure and operate under a national bank trust charter, giving them the right to serve customers across all 50 states. However, banks say giving these firms the OCC's stamp of approval means letting firms loose into the US financial system without the same rigorous supervision and controls required of fully fledged banks."
"The reforms brought forward by the OCC are widely seen as playing into the Trump administration's ideological push to bring crypto and previously fringe financial firms into the mainstream. Trump's own family-run cryptocurrency business, World Liberty Financial, made headlines after applying for one of the OCC's national trust bank charters in January."
"The BPI in October urged the OCC to reject applications by crypto and blockchain firms Circle and Ripple, as well as London-headquartered payments firm Wise, all of which lodged applications for so-called national trust charters."
The Bank Policy Institute, representing 40 major US banks including JP Morgan, Goldman Sachs, and Citigroup, is evaluating legal options against the Office of the Comptroller of the Currency. The OCC, led by Trump appointee Jonathan Gould, has reinterpreted federal licensing rules to facilitate crypto and fintech companies obtaining national bank trust charters. This allows these firms to operate across all 50 states with OCC approval. Banks argue this grants inadequate regulatory oversight compared to traditional banks, creating systemic risks. The reforms align with the Trump administration's agenda to mainstream crypto and alternative financial services. Trump's family cryptocurrency business, World Liberty Financial, applied for an OCC charter in January, intensifying controversy.
Read at www.theguardian.com
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