Banking Trade Groups Urge OCC to Halt Digital Trust Bank Approvals

Five major banking associations are urging the Office of the Comptroller of the Currency (OCC) to delay approval of new national trust bank charters for digital asset firms, including Ripple, Fidelity Digital Assets, National Digital TR CO, and First National Digital Currency Bank.

In a formal letter to OCC licensing directors, the associations—representing thousands of U.S. banks and credit unions—argue that the public portions of these applications lack essential detail and block meaningful public review. The letter points to vague disclosures, particularly NDTC’s reference to “digital asset custody” without elaboration, and notes that comment periods are closing or have already ended without adequate transparency.

Concerns over non-fiduciary activities

The core issue raised is whether the applicants’ proposed business models qualify as legitimate fiduciary activities under federal law. Under 12 U.S.C. § 92a, national trust banks must primarily engage in fiduciary roles—such as acting as trustee or investment adviser. However, the applications suggest a focus on crypto custody, stablecoin reserve management, and payment infrastructure, which the OCC has previously said do not count as fiduciary activities unless tied directly to trust powers. The associations warn that granting charters to firms that sidestep these requirements could create a regulatory loophole, letting companies obtain federal charters without complying with the broader oversight that applies to full-service national banks.

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Call for transparency and public input

The letter stresses that any major shift in OCC policy—particularly one that redefines what qualifies as fiduciary service—should go through public notice and comment. Citing past interpretive letters and regulatory precedent, the associations argue that approving such applications without clear authority or input could erode the integrity of the trust bank charter framework. They urge the OCC to pause all current digital trust applications until fuller business plans are disclosed and stakeholders have time to weigh in on the broader policy implications.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.