The American Bankers Association (ABA) has urged the U.S. Office of the Comptroller of the Currency (OCC) not to rush to grant bank charters to cryptocurrency companies, The Block reported on Wednesday.
As the OCC recently reviews bank charters for crypto and stablecoin firms, the ABA is concerned about regulatory shortcomings and disruption to the existing financial system.
The ABA says oversight and bankruptcy procedures should be in place before the OCC grants bank charters to digital asset companies. The Block also reported that the ABA views it as premature for the OCC to proceed with conditional approvals while the GENIUS Act has not yet taken effect.
The ABA said, "Given the risks in the cryptocurrency market, the OCC should not depart from traditional chartering procedures and should take a cautious approach."
If the OCC grants bank charters to crypto firms, those companies could also come under oversight by the Securities and Exchange Commission (SEC). The ABA expressed concern, saying, "This could weaken the traditional boundary between bank and securities regulation."
Chi-gyu Hwang
delight@d-today.co.kr