Bank of America and U.S. Banking Groups Urge OCC to Delay Circle and Ripple Bank Charter Decisions

Key Takeaways:U.S. banking lobby calls for delay on crypto firms' bank license bidsTargets include Circle and Ripple’s pending applicationsBanks cite insufficient public information and model differencesOCC urged to reassess regulatory risks tied to digital asset firmsOn July 21, a coalition of major U.S. banks and credit union associations—including Bank of America—submitted a joint letter to the Office of the Comptroller of the Currency (OCC), formally requesting a delay in decisions regarding the banking license applications of Circle and Ripple, according to a report from TechFlow.The banking groups argue that the applications lack adequate public disclosures necessary for thorough evaluation. They also emphasized that crypto firms like Circle and Ripple operate with fundamentally different business models compared to traditional trust banks, raising concerns about regulatory fit and systemic risk.The letter reflects growing tension between the traditional banking sector and crypto-native institutions seeking legitimacy through national banking charters. Circle, the issuer of the USDC stablecoin, and Ripple, the company behind XRP and cross-border settlement technology, are both pursuing banking licenses to enhance their U.S. financial footprint and regulatory standing.However, banking groups are urging the OCC to slow down the approval process until more robust frameworks are established for evaluating digital asset-related risks, including custody, stablecoin reserves, and consumer protections.