Five Crypto Companies Win Federal Banking Approval in Historic Regulatory Shift
This marks one of the most significant regulatory developments in crypto history, bringing digital asset firms under the same federal oversight as traditional financial institutions.
The approved companies are Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos. Circle and Ripple received brand new charters, while BitGo, Fidelity, and Paxos converted their existing state-level trust companies into national trust banks.
Why This Matters
National trust bank charters give crypto companies a major advantage. Instead of navigating different rules in each state, they can now operate under a single federal framework across all 50 states. They gain direct supervision by the OCC, the federal agency that oversees more than 1,000 national banks holding over $17 trillion in assets.
These charters allow the companies to offer digital asset custody services and conduct fiduciary activities. However, they cannot accept deposits, make loans, or offer FDIC insurance like traditional banks.
Source: @sytaylor
OCC Comptroller Jonathan V. Gould, who took office in July 2025, said the approvals are “good for consumers, the banking industry and the economy.” Gould previously served as the OCC’s chief counsel during the first Trump administration, when the agency chartered the first crypto banks.
The Five Companies
Circle received approval for its First National Digital Currency Bank. The company issues USDC, a stablecoin with a $78 billion market cap. Circle went public in May 2025 and plans to use the charter to oversee its USDC reserves and provide custody services for institutional clients.
Ripple gained approval for Ripple National Trust Bank. The company issues the RLUSD stablecoin worth $1.3 billion. Interestingly, Ripple’s charter explicitly states it will not issue RLUSD through the trust bank. CEO Brad Garlinghouse called the approval a “massive step forward” and criticized traditional bank lobbyists for anti-competitive tactics.
Paxos converted its state charter to become Paxos Trust Company, National Association. Unlike Ripple, Paxos received explicit permission to issue stablecoins under federal oversight. CEO Charles Cascarilla said the company is “excited to power a platform subject to federal oversight and supervision.”
BitGo, based in South Dakota, converted its existing charter to federal status. The company holds about $90 billion in crypto assets under custody and filed for an IPO in September 2025. BitGo reported revenue of $4.19 billion in the first half of 2025, up from $1.12 billion during the same period in 2024.
Fidelity Digital Assets also converted from a state charter to national status, joining its sister companies under federal banking regulation.
The GENIUS Act Connection
These approvals follow the passage of the GENIUS Act, which President Trump signed into law on July 18, 2025. The law creates the first federal regulatory framework for stablecoins.
The GENIUS Act passed with strong bipartisan support—68 to 30 in the Senate and 308 to 122 in the House. It requires stablecoin issuers to back every dollar of their digital currency with liquid assets like U.S. dollars or Treasury bills. The law also gives the OCC authority to supervise nonbank stablecoin issuers.
Circle filed its application on June 30, 2025, while Ripple applied in July 2025. The OCC has a 120-day review period for charter applications under the new law.
A Surge in Applications
The crypto charter rush reflects changing attitudes toward digital assets. The OCC received 14 charter applications in 2025 alone. From 2011 through 2024, the agency averaged fewer than four applications per year.
Other major crypto companies have filed applications that are still pending, including Coinbase, Bridge (owned by Stripe), and Crypto.com. These companies were not included in the December 12 approvals.
Anchorage Digital became the first federally chartered crypto bank in January 2021. CEO Nathan McCauley welcomed the new approvals, saying his company “never wanted to be the last.”
Banking Industry Pushback
Not everyone supports bringing crypto companies into the federal banking system. The Bank Policy Institute, which represents major banks, questioned whether the OCC’s requirements are “appropriately tailored to the activities and risks” these companies face.
Traditional banking groups have fought against crypto charter applications throughout 2025. In September, three banking trade groups representing $234 trillion in assets asked regulators to limit crypto custody to traditional banks only. The Independent Community Bankers of America has filed complaints against several crypto firms seeking federal charters.
Ripple’s Garlinghouse directly addressed this opposition, stating that critics have “complained that crypto isn’t playing by the same rules, but here’s the crypto industry—directly under the OCC’s supervision and standards—prioritizing compliance, trust and innovation.”
What Happens Next
These are conditional approvals, meaning the companies must meet specific OCC requirements before becoming fully operational national trust banks. Once they satisfy all conditions, they will join approximately 60 existing national trust banks regulated by the OCC.
The approvals represent a dramatic policy shift under the Trump administration. Jonathan Gould, who has experience with both traditional finance and crypto (he previously worked as chief legal officer at Bitfury Group), is leading the OCC’s crypto-friendly approach.
For crypto companies, federal charters provide regulatory clarity and could boost institutional confidence. For traditional banks, these approvals signal increased competition in custody and digital asset services.
The Road Ahead
The December 12 approvals mark a turning point in how the United States regulates digital assets. By bringing stablecoin issuers and crypto custodians into the federal banking system, regulators are betting that clear rules will protect consumers better than keeping these companies in a regulatory gray zone.
Whether this approach succeeds will depend on how well these new trust banks operate under OCC supervision and whether they can deliver on promises of compliance and consumer protection. With billions of dollars in stablecoins already circulating and institutional adoption growing, the stakes have never been higher for getting crypto regulation right.
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