In a move that reshapes the regulatory map for digital dollars, the Office of the Comptroller of the Currency (OCC) on Dec. 12 granted conditional approvals for five crypto companies to convert or establish national trust banks. Circle, Ripple, BitGo, Fidelity Digital Assets and Paxos now have a pathway to federal trust charters — a step many of them have pursued since the GENIUS Act set a federal framework for dollar‑pegged stablecoins earlier this year.
The approvals are conditional, not final. But they matter because they put some of the biggest stablecoin issuers and custodians squarely under federal supervision rather than a patchwork of state rules.
What happened and why it’s notable
The OCC — the only federal agency that charters banks and trusts — gave preliminary signoffs that allow these firms to convert existing state trust charters into national ones or, in Circle’s case, to build a new federally supervised trust bank, First National Digital Currency Bank. Circle framed the decision as a milestone toward compliance with the GENIUS Act and a way to bolster the infrastructure behind USDC; the company’s announcement is available on its site here.
Ripple, which has been expanding its payments ambitions and markets a $1.3 billion stablecoin, hailed the move as a major step for its business. BitGo, Paxos and Fidelity — each with different roles in custody, issuance or institutional services — also received conditional approvals.
The regulator’s tone has shifted noticeably since the current OCC leadership took over. Jonathan Gould, the Trump administration appointee who runs the agency, has signaled openness to integrating crypto businesses into the federal banking system. That change in posture helps explain the string of applications from stablecoin issuers and custodians seeking federal clarity.
What a national trust bank lets them do — and what it doesn’t
A national trust bank is not the same as a full‑service national bank. Trust charters allow fiduciary activities: custody of customer assets, acting as fiduciaries in payments and certain settlement functions. They do not generally authorize taking retail deposits or making the broad range of loans typical of full‑service banks, and customer funds held under a trust charter usually don’t carry FDIC deposit insurance.
To move from conditional to final approval, the OCC will require these firms to meet capital and liquidity thresholds, limit their operations to trust‑banking activities as defined by the agency, and adhere to rules tied to the GENIUS Act. The OCC retains the right to alter or rescind the conditional approvals if firms fail to meet its conditions.
Politics, competition and an industry looking for normalcy
Reactions split along familiar lines. Executives at the approved firms framed the decisions as vindication: more regulatory clarity, better consumer protections and a firmer foundation for institutions that want to use digital dollars. Ripple CEO Brad Garlinghouse called it "huge news" and lambasted traditional bank lobbyists. BitGo’s CEO described the approvals as marking an end to the "war on crypto" and the beginning of regulatory integration.
Congress and the Treasury entered this space with the GENIUS Act, which imposed federal standards for stablecoins and prompted many issuers to seek federal authority. The shift also follows a broader debate about so‑called debanking, with the OCC releasing a report scrutinizing large banks for severing ties with lawful crypto businesses — a dynamic the regulator said could lead to enforcement action.
Those skeptical of rapid federal charters warn of systemic risk, regulatory capture or insufficient consumer protections if crypto firms rush into banklike roles without the full complement of bank safeguards. The OCC argues that a federal pathway is preferable to inconsistent state rules, and firms say federal oversight offers clearer guardrails for institutional adoption.
What comes next
Each company must satisfy the OCC’s conditions — think capital, compliance programs, operational limits — before a final charter is issued. If they succeed, the list of federally chartered trust banks with crypto ties will grow from one (Anchorage Digital) to several, potentially reshaping how stablecoins are issued, reserved and custodied in the U.S.
For market participants and institutional customers, the immediate effect may be more confidence: clearer audits, standardized oversight and a single federal regulator to call if something goes awry. For Congress and regulators, the approvals test whether the federal framework can keep pace with fast‑moving technology while protecting consumers and the broader financial system.
Expect legal and technical details to dominate the coming months — audits of reserves, capital planning, and operational controls — as these firms try to turn conditional approvals into permanent charters. Meanwhile, the broader ecosystem will watch whether federal oversight encourages more banks and asset managers to work with crypto firms or simply funnels activity into a small number of regulated players.
This is a pivot point: a set of conditional approvals that could normalize some parts of crypto under federal rules — but only if the firms meet the OCC’s demanding conditions and skepticism from some quarters doesn’t translate into legal or legislative pushback.