American banking groups urged bank monitoring in the country to postpone their decision regarding the licenses of the banking bank to be more details about their plans in general, claiming that allowing offers will be a “basic exit” from the current policy.
American Banking Association, bank trade groups and other credit union He said In a letter to the Currency Observer Office (OCC) on Thursday that its approval of the national banking covenants such as Stablecoin Circle Internet Group and Ripple Labs “will raise great political and practical concerns.
The groups said: “There is an important policy and legal policy on whether the proposed action plans for applicants involve the types of credit activities performed by national banks of confidence.”
The digital assets of the circle, ripples and sincerity are among a A modern group One of the companies that focuses on the encryption that has applied Banking licenses With OCC, which mainly allows them to be their own bank, settling payments faster and organizing them at the federal level, allowing them to work in each state.
The banks want a temporary stop on green lighting charters for encryption
The groups asked OCC to postpone their decision on bids for encryption companies, claiming that the general parts of their applications “do not provide sufficient information to the public to evaluate or provide a meaningful comment on business models and proposed operations for applicants.”
They added that the audience should also be able to scrutinize OCC if allowed for applications, adding that it will be a departure from the long -term policy because the business models offered by the encryption companies “do not include the types of credit activities that are historically undertaken by the National Trust Charter Banks.”
The groups wrote: “Providing nursery services to digital assets is not a credit activity, and giving logic as traditional credit activity is absent – or, at best – will represent a major change in the OCC policy that must be made only according to the existence of an appropriate public notice and the period of suspension.”
They said that if the encryption companies are allowed to be national banks that provide “traditional banking services such as payments”, they can be followed by other companies, which the groups said will provide “material risks to the American banking and financial system.”
A “interesting reaction” by banking groups
Caitlin Long, founder of the Bank Custodia Bank, which focuses on encryption, to publish To X on Saturday, the group’s issue is about whether confidence charters can be used as “a bank reactions” with just a small part of the capital requirements “is very likely to receive.
“An interesting reaction by banking commerce societies to fight,” she added. “If what they fear will happen in the end, then why do banks not turn to companies trust and maintain their current business in a small part of the capital requirements and regulations?”
Chairman of the Government of Projects Company Affairs, Alexander Harb, He said In response to the message that “banks and credit federations rarely agree on anything. But they seem to agree that they are about to get some competition from encryption.”
Expect more encryption companies that want the bank’s covenants
Logan Payne, a lawyer -focused lawyer in Winston and Weston, recently told Cointelegraph that the newly passed Stablecoin law For a bank license.
Related to: “Encryption week” in the big change: What is happening now?
The new stablecoin license under the laws would limit the activity of the encryption company to the STABLECOIN version only, but Payne said, “To a large extent, every source of Stablecoin in the United States under US law is now involved in activities outside the scope of this license.”
He said that the source of Stablecoin will need licenses to transfer money at the state level to work at the national level, even with the license of the new genius law, which creates an incentive for Stablecoin Exporters to apply for the National Confidence Bank with OCC.
Payne said that the charter “allows them to engage in the edition of Stablecoin as well as a wide range of activities, but without the need to obtain licenses from the state to the state.”
magazine: Crypto wanted to topple banks, and now it’s in Stablecoin fighting
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