The Crypto Banking Revolution
In a thrilling twist for the burgeoning cryptocurrency sector, Acting Comptroller of the Currency, Brian Brooks, has laid out a roadmap for crypto custody providers aiming to snag a coveted federally-approved bank charter. Yes, you heard it right! Crypto custodians might just take a giant leap toward traditional banking!
Brooks’ Three Ways to Charter a Bank
During his chat with Forbes, Brooks detailed three pathways for payment companies to secure that golden ticket known as a federally chartered bank:
- Non-depository national bank charter: A less beige option, but hey, who doesn’t love a bit of color?
- Buy a depository institution: If you have the cash, why not scoop one up?
- Apply for a National Trust Bank charter: This is where the cool kids are heading.
And guess what? The Office of the Comptroller of the Currency (OCC) is on the verge of letting trust companies transform into banks. Talk about an exciting mashup!
The Trusty Players of Crypto
Companies like Anchorage, Coinbase Custody, and Gemini are already doing their thing under state-issued trust company charters. They’ve got the board game set up; now they’re just waiting for the second edition rules from the OCC to kick in.
Applications in the Pipeline
Brooks revealed that a slew of applications have already come in from crypto companies eager to morph their charters into National Trust Bank charters. Yes, in case you were wondering, that’s definitely one way to up your game in the world of finance!
Where’s the Future Headed?
Sounds like these applications are just the tip of the iceberg. Brooks anticipates a significant surge in participation from payments companies. “The magic non-depository payments charter — we don’t have that yet but are ready to do it,” he explained. It’s not here yet, but all the excitement is brewing!
Brooks’ Future as Comptroller
And let’s not forget the politics at play! President Trump has voiced his support to officially appoint Brooks as the full-time Comptroller of the Currency. If he gets the nod from the Senate—first, though, they actually have to notice it—Brooks could steer the ship for a significant period into the next administration. Let’s see if they can seal the deal before the clock strikes twelve!
