Banking and credit union groups in the U.S. are urging the OCC to delay its decision on the bank charter applications of Crypto Assets companies.

According to Techub News and reports from CoIntelegraph, the American Bankers Association and other banking and credit union industry associations have sent a letter to the Office of the Comptroller of the Currency (OCC), stating that approving national bank charters for companies like Circle and Ripple Labs "would raise significant policy and procedural issues." These groups have requested that the OCC delay its decision on the licensing applications of crypto asset companies, claiming that the publicly available portions of their applications "fail to provide sufficient information for the public to assess or to offer meaningful comments on the applicants' proposed business models and operations." They added that if the OCC approves these applications, the public should also be able to review the OCC's decisions, as the business models proposed by crypto asset companies "do not involve the types of fiduciary activities historically conducted under traditional trust banking charters," which would diverge from long-standing policy.

Circle, Ripple, and Fidelity Digital Assets are among the recent cryptocurrency-related companies that applied for a banking license from OCC. Once licensed, these companies will be able to establish their own banks, settle payments faster, and accept federal oversight, allowing them to operate in states across the United States.