U.S. banking industry lobbying group urges slowing down approval of bank licenses for crypto companies

Mars Finance reports that the American Bankers Association (ABA) has submitted a comment letter to the Office of the Comptroller of the Currency (OCC), urging a slowdown in the approval process for cryptocurrency company banking licenses. The ABA warns that approving these applications before Congress completes the relevant regulatory framework could pose risks to the financial system. Currently, several crypto companies including Circle, Ripple, and Coinbase are applying for or already hold OCC trust bank licenses. Banking industry concerns center on this potentially allowing crypto firms to bypass traditional banking intermediaries and connect directly to the Federal Reserve payment system.