The lobbying group of American banks questions the application of encryption companies for banking licenses.

[American Bank Lobby Group Questions Crypto Companies' Applications for Banking Licenses] American banking groups are urging the country's banking regulators to delay decisions on the banking license applications of Crypto Assets companies until the details of these companies' plans are more transparent. They claim that allowing these applications would be a "fundamental departure" from existing policies. The American Bankers Association and other banking and credit union industry groups sent a letter to the Office of the Comptroller of the Currency (OCC) on Thursday, stating that its approval for cryptocurrency companies, including stablecoin issuers Circle Internet Group and Ripple Labs, to obtain national bank charters "will raise significant policy and procedural issues." These groups believe that "there are significant policy and legal questions regarding whether the proposed business plans of the applicants involve the types of fiduciary activities performed by national trust banks." Circle, Ripple, and Fidelity Digital Assets are a group of Crypto Assets companies that recently applied for banking licenses with the OCC. Obtaining these licenses would essentially allow them to become their own banks, enabling faster settlement of payments and being regulated at the federal level, allowing them to operate across all states in the U.S.