OCC wants to open national bank charters to crypto companies

The American banking regulator, the Office of the Comptroller of the Currency (OCC), wants businesses involved in digital assets to get a fair chance at obtaining a national banking charter. OCC head Jonathan V. Gould says that any party conducting legal activities, even if those activities involve new technologies such as crypto, should be able to access the national banking system.

In short:

• OCC chief Gould wants to open a clear path to national banking charters for crypto companies.
• In the past 18 months, the OCC received 40 applications for new charters, including for national trust banks.
• The OCC is working with the FDIC on a more transparent and accessible application process.

America open for new banks again

Gould says that “America and the OCC are open for business again.” With that, he refers to a period of more than fifteen years in which the number of new banking charters declined sharply. Between 2011 and 2014, the OCC received an average of fewer than four applications per year for a so-called de novo bank charter, and sometimes received no applications at all. This made for a less dynamic and competitive banking sector.

Now that tide appears to be turning. In the past eighteen months, no fewer than 40 applications came in, including applications for national trust banks. Many of the complete applications are now being processed within 120 days, which shows that the regulator is seriously streamlining the process.

Collaboration with the FDIC

The OCC is also working closely with the Federal Deposit Insurance Corporation (FDIC), which recently introduced a revised process for evaluating deposit insurance applications. Gould praises that step and says the two initiatives complement each other. In his view, a healthy banking system can be recognised by the arrival of new entrants, because they stimulate innovation and give consumers more choice.

For the crypto sector, this news is relevant. Companies offering digital assets have been hitting regulatory barriers for years when seeking access to the traditional banking system. A clear path to a national banking charter would give them more legitimacy and could pave the way for broader integration with the existing financial system. More details can be found in the official OCC press release.