Crypto.com cleared a major regulatory hurdle Monday. The exchange secured conditional approval for a national bank trust charter from the Office of the Comptroller of the Currency. The crypto.com bank charter marks another win for digital asset companies seeking federal banking oversight.
Once fully approved, Crypto.com would operate as a federally regulated custodian across the United States. Full OCC oversight. Nationwide reach. The company filed its application in October, targeting custody services for digital asset treasuries, exchange-traded funds, and institutional clients.
“This conditional approval is the latest testament to both our commitment to compliance and to providing customers trusted and secure services they expect from Crypto.com,” said co-founder and CEO Kris Marszalek.
The timing matters. Coinbase also applied in October but remains in limbo. So do others. Meanwhile the OCC has already conditionally approved five applications from Circle, Ripple, BitGo, Fidelity Digital Assets and Paxos. That wave came two months before the crypto.com bank charter approval—a clear signal the federal regulator is open for business with digital asset firms.
Coinbase made its stance clear: “no intention of becoming a bank” if approved. Different strategy. Same application process.
**What the Charter Unlocks**
A national bank trust charter changes the compliance map. Most state money transmission regulations exclude chartered trust companies, according to BairdHolm attorney Eli Rosenberg. That means nationally chartered companies dodge most state licensing requirements. One federal approval instead of fifty state battles.
For Crypto.com, that translates to easier expansion and unified oversight. The crypto.com bank charter application reflected this strategy from the start—custody operations that span state lines without patchwork licensing.
The competitive advantage is clear. Companies with federal charters operate under OCC rules rather than navigating different requirements in California, New York, Texas, and forty-seven other jurisdictions. Compliance costs drop. Speed increases.
**The Banking Pushback**
Not everyone’s celebrating. The American Bankers Association sent the OCC a comment letter this month demanding delays. The banking group wants “robust, broadly applicable safety and soundness standards” before more crypto.com bank charter approvals move forward.
Their argument: wait until the GENIUS Act framework is fully implemented. That payment stablecoin bill became law in July. The ABA insists the OCC should “not measure its application decisioning progress against traditional timelines” when reviewing digital asset companies.
Translation: slow down. Traditional banks see crypto firms getting federal charters and worry about competitive pressure without equivalent regulatory burden.
The tension is obvious. Legacy banking wants higher barriers. Crypto companies want speed. The OCC under current leadership is picking speed.
**The World Liberty Factor**
Politics entered the chat. World Liberty Financial—the company behind the USD1 stablecoin and backed by President Donald Trump and his sons—applied for its own national bank trust charter in January. If approved, World Liberty would issue and custody USD1 directly rather than through third parties.
Massachusetts Senator Elizabeth Warren isn’t buying the neutrality pitch. She said she has “no confidence” that OCC head Jonathan Gould would fairly assess World Liberty’s application given the Trump family connection.
Gould pushed back, calling the review process “apolitical and nonpartisan.”
Question is whether scrutiny of World Liberty slows other approvals or creates stricter standards retroactively. The crypto.com bank charter came before World Liberty’s controversy exploded. Future applicants might face tougher review.
**What Conditional Means**
Conditional approval isn’t full approval. Companies must meet specific requirements before final authorization. The OCC sets conditions around capital, compliance systems, management structure, and operational safeguards.
For the five companies approved two months ago—Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos—those conditions are still being worked through. Same process now applies to Crypto.com. Timeline unclear. Could be months.
The pattern suggests the OCC is willing to grant conditional approvals relatively quickly while maintaining oversight through the conditions process. Speed matters in crypto. This approach gives companies momentum while preserving regulatory control.
Nubank went through similar conditional approval this month for its own national bank application, showing the OCC is processing multiple applications simultaneously.
**The Bigger Shift**
Federal banking charters for crypto companies were rare two years ago. Now they’re becoming standard. The OCC under current leadership views digital asset custody as a legitimate banking function worth bringing into federal oversight.
That philosophical shift matters more than individual approvals. When Circle, Ripple, and Fidelity got conditional charters, it established precedent. The crypto.com bank charter approval reinforces that precedent. Future applications face lower hurdles.
Traditional banks fought this for years. They argued crypto companies shouldn’t access federal charters without full banking licenses. The OCC disagreed. Trust charters focused on custody services provide a middle path—federal oversight without deposit insurance or lending powers.
The result: crypto firms get regulatory legitimacy and state licensing exemptions. Banks get competition. Customers theoretically get better protection through federal oversight.
**What’s Next**
Crypto.com now works through its conditional requirements. No public timeline for full approval. The company will build out compliance infrastructure, hire personnel, and demonstrate it can meet OCC safety and soundness standards.
Meanwhile, other companies watch. If Crypto.com clears conditions quickly, expect more applications. If the process drags or political pressure from Warren’s scrutiny of World Liberty creates delays, some firms might reconsider.
Coinbase’s application remains pending. The exchange said it doesn’t want to become a bank, but a trust charter isn’t a bank—it’s a custody vehicle. Whether Coinbase gets conditional approval or faces different treatment remains unclear.
The American Bankers Association will keep pushing for delays and stricter standards. Legacy finance doesn’t want crypto companies operating under federal charters with lighter compliance burdens than traditional banks carry.
All eyes on how many conditional approvals convert to final authorization—and whether the Trump administration’s connections to World Liberty Financial change the OCC’s approval tempo.
