Traditional Banks Pushback as Crypto.com Pursues Federal Charter Bid

Crypto.com has taken a significant step toward expanding its regulated banking operations in the United States by filing for a National Trust Bank Charter with the Office of the Comptroller of the Currency (OCC). The Singapore-based digital assets platform announced the move on October 24, joining a growing list of cryptocurrency firms-including Coinbase, Circle, and Stripe-seeking federal banking licenses to streamline oversight and enhance their service offerings. If approved, the charter would allow Crypto.com to offer federally regulated custody and trust services for digital assets, exchange-traded funds (ETFs), and institutional clients under the OCC's supervision.

The regulatory process for a National Trust Bank Charter typically takes 12 to 18 months, during which the OCC evaluates applicants to ensure compliance with federal standards. Crypto.com's application aligns with broader industry efforts to integrate digital assets into traditional finance. Earlier this year, the OCC issued guidance permitting national banks to custody and trade crypto assets, provided they meet strict safety and risk management criteria. This shift has spurred applications from crypto firms like Erebor Bank, which became the first to secure conditional approval in July 2025.

The move reflects a strategic push by crypto companies to operate under a unified federal framework rather than navigating fragmented state regulations. "Building the Crypto.com product and service portfolio through regulated and secure offerings has been our focus since day one," said CEO Kris Marszalek in a statement. A federal charter would strengthen the firm's position as a "custody service destination of choice," particularly as it expands into institutional markets and prediction platforms.

However, the path to approval remains challenging. Traditional banking groups, including the American Bankers Association (ABA), have lobbied the OCC to pause crypto-related charter approvals, arguing that many applicants lack the fiduciary standards expected of trust banks. The ABA warned that approving crypto firms could weaken safeguards in the U.S. banking system, citing concerns over anti-money laundering (AML) compliance and transparency. Despite these objections, the OCC's leadership under Comptroller Jonathan Gould has shown openness to digital asset activities, with recent actions like allowing Erebor Bank's conditional approval signaling a more accommodating regulatory environment.

Crypto.com's application also arrives amid broader regulatory developments. The Federal Reserve is exploring "skinny" master accounts for crypto institutions, which would grant limited access to the Fed's payment systems without full banking privileges. Such measures could further integrate crypto firms into the traditional financial ecosystem. Meanwhile, the firm's stock price saw a modest uptick following the announcement, with Cronos peaking at $0.0153 before settling at $0.0146.

The outcome of Crypto.com's application will have ripple effects for the industry, as it could set a precedent for how the U.S. regulates crypto custody and trust services. For now, the company joins a competitive race with peers like Coinbase and Circle, all vying to establish a foothold in a rapidly evolving regulatory landscape.