The American Bankers Association urges regulators to slow down the approval process for crypto bank licenses

Odaily Planet Daily reports that the American Bankers Association (ABA) stated in a comment letter to the Office of the Comptroller of the Currency (OCC) that the approval process for crypto-related bank licenses should be slowed down until the regulatory framework for stablecoins and digital asset businesses is clarified. They emphasized the importance of fully understanding and implementing safety and soundness standards. The ABA also recommended prohibiting non-bank trust companies from using the term “bank” to prevent misleading the market. The banking organization pointed out that the OCC currently links license approval to compliance with the GENIUS Act, but full implementation of the act could still take several years and involves rulemaking by multiple regulatory agencies. It is reported that crypto companies such as Circle, Ripple, BitGo, Paxos, Coinbase, and Laser Digital (a subsidiary of Nomura) are applying for or have already obtained conditional OCC trust bank licenses. Additionally, World Liberty Financial, associated with Donald Trump, has also applied for a license covering its USD 1 stablecoin. (Decrypt)