Circle, Ripple and Other Crypto Firms Face Roadblock as ABA Urges Delay on National Bank Licenses

ccn.comPublished on 2025-07-21Last updated on 2025-07-21

Key Takeaways

The American Bankers Association (ABA) is urging federal regulators to delay crypto firms’ entry into the banking system.
Circle, Ripple, BitGo, and others have applied for national bank charters in light of recent stablecoin legislation.
Currently, Anchorage Digital is the only crypto firm with a national trust bank charter, granted in 2021.

The American Bankers Association (ABA), joined by other U.S. banking and credit union groups, is urging federal regulators to pump the brakes on granting national bank charters to companies like Ripple and Circle.

Their concern? The fast-growing influence of crypto in the banking sector may be outpacing transparency, oversight, and existing regulatory norms.

US Banking Association Calls For Delay

In a recent letter to the Office of the Comptroller of the Currency (OCC) , the ABA expressed concerns over what it described as limited public disclosure in several crypto firms’ applications.

According to the association, the lack of detail around business models, financial oversight, and risk management hampers public comment and transparency during the OCC’s review process.

The ABA cautioned that granting these charters could open the door for other non-traditional applicants, potentially weakening the regulatory standards that underpin the U.S. banking system.

Specifically, it argued that crypto firms primarily offer custody and digital asset services, not traditional fiduciary duties like estate and trust management, which national trust banks are expected to perform under current OCC policy.

Approving these applications, the ABA said, would mark a “fundamental departure” from the chartering framework currently in place.

To date, only Anchorage Digital has received a national trust bank charter, which it was granted in 2021.

GENIUS Act Spurs Crypto Push for Licenses

Interest from crypto firms surged after the passage of the GENIUS Act in July 2025.

The new law requires stablecoin issuers to operate under federal oversight, either as national banks, credit unions, or specially chartered non-banks supervised by the OCC.

This has led major players like Circle and Ripple to seek national charters in order to meet the new compliance requirements and scale their stablecoin operations under a federal umbrella.

Who’s Applied?

Circle

Circle applied for a national trust bank charter on June 30.

The proposed “First National Digital Currency Bank, N.A.” would manage reserves backing USDC and offer institutional crypto custody services.

Ripple

Ripple filed its application on July 2 , aiming to bring its RLUSD stablecoin and broader payments business under federal banking regulation.

The company also applied for a Federal Reserve master account via its subsidiary, Standard Custody & Trust, to directly hold stablecoin reserves at the Fed.

Other Applicants

Firms including BitGo , Fidelity Digital Assets, and Wise have also submitted similar applications, underscoring a growing push from crypto to integrate more closely with the traditional financial system.

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