Palmer Luckey's Crypto Bank Seeks Regulatory Approval with Political Ties

Palmer Luckey's new digital bank, Erebor, expects to receive federal clearance in under six months, thanks to its close ties with regulators and Luckey's political contributions, mostly to Republicans. Experts disagree with this timeline, estimating it could take up to nine months for approval. Erebor's connections to the OCC leadership and its niche focus on post-SVB collapse banking may aid its success.

Palmer Luckey, the founder of Anduril, has launched Erebor, a new digital bank, with ambitious plans to secure federal clearance in less than six months. The bank's optimistic timeline is attributed to Luckey's political contributions and his close connections with regulators, particularly the Office of the Comptroller of the Currency (OCC) [1].

Erebor's fundraising note outlines that it expects to receive its national bank charter from the OCC within six months after applying. This timeline is significantly shorter than the usual procedure, which typically takes much longer. The document highlights that Luckey's "political network" will assist in speeding up regulatory backing. Records indicate that Luckey contributed over $1 million to political candidates and parties, mostly Republicans, last year [1].

Erebor's strength lies in its strategic links to the OCC leadership. The bank's co-founder is "uniquely connected" to Jonathan Gould, who became the Comptroller of the Currency in July 2025. Gould previously worked in financial regulation during the Trump administration and was briefly the chief legal officer for Bitcoin miner Bitfury before joining the law firm Jones Day. Adam Cohen, a well-known Skadden lawyer who worked on Erebor’s OCC application, recently became Gould’s chief counsel at the OCC [1].

Despite Erebor's confident projections, experts are skeptical. Todd Baker, a fintech consultant at Columbia University, estimates that a more realistic time frame for approval is nine months, even in favorable political situations. Michele Alt of Klaros Group also notes that implementing deposit insurance after getting preliminary clearance typically takes longer [1].

Erebor submitted an application to the FDIC on July 28, 2025, after receiving preliminary approval from the OCC. However, the OCC has not yet confirmed Erebor's status, and the timeline for deposit insurance remains uncertain. Historically, the average time to decide on deposit insurance applications has been around 295 days, or almost 10 months [1].

Erebor's niche focus on post-SVB collapse banking may also play a role in its success. The bank is targeting a market that has been disrupted by the collapse of Silicon Valley Bank (SVB), which could offer Erebor an advantage in attracting customers [1].

References:
[1] https://financefeeds.com/palmer-luckeys-political-ties-poised-to-aid-his-crypto-bank/
[2] https://www.businessinsider.com/palmer-luckey-erebor-bank-political-network-occ-jonathan-gould-2025-8