Crypto
Home›Crypto›Regulation›OCC says it is renewing de novo bank charter push for…
OCC says it is renewing de novo bank charter push for crypto firms
The OCC said it received 40 de novo applications in the last 18 months and aims to revive new bank formation, including for entities involved with digital assets.
Bitcoin Magazine reports the U.S. Office of the Comptroller of the Currency said it is “open for business” as it renews efforts to revive de novo bank chartering, creating a potential banking pathway for large crypto firms. In a Tuesday statement, the OCC said reinvigorating new bank formation remains a priority and commended the Federal Deposit Insurance Corporation for its recent efforts, adding that the FDIC’s deposit insurance review process aligns with the OCC’s work to reverse the decline in new charters. Comptroller of the Currency Jonathan V. Gould said de novo chartering is a sign of a healthy banking system and argued that entities conducting legally permissible activities, including those involving digital assets and other novel technologies, should have a path to becoming a national bank.
The OCC said de novo chartering fell significantly over the past 15 years, noting that from 2011 through 2014 it received an average of fewer than four charter applications per year, and in some years it received none. It said that number has turned, with 40 de novo applications received in the last 18 months, and in many cases it has ruled within 120 days of receiving a complete application.
For bank charter activity connected to crypto, Bitcoin Magazine said the OCC has granted conditional approval to several top crypto companies, including Ripple, Circle, Crypto.com, and Paxos. It also said Erebor Bank, N.A., backed by Palmer Luckey, Joe Lonsdale, and Founders Fund, received final approval and opened for the first time in five years, citing the OCC’s chartering pace.
Latest closeBitcoin $63,388.80 ▼0.3%