Banking and Finance Law Daily Wrap Up, FINANCIAL TECHNOLOGY—NCRC opposes Crypto.com’s ‘National Trust Charter’ application, (Dec 9, 2025)

By Colleen M. Svelnis, J.D.

The NCRC has submitted a comment letter in opposition to the National Trust Charter application submitted by Crypto.com under the name Foris DAX National Trust Bank.

The National Community Reinvestment Council (NCRC) has submitted a comment letter to the Office of the Comptroller of the Currency expressing its strong opposition to a National Trust Charter application submitted by Crypto.com under the name Foris DAX National Trust Bank. According to the NCRC, granting a national trust bank charter to Crypto.com “would enable regulatory arbitrage, reduce investment into community development, risk significant harm to consumers and communities, and would create systemic risk.” The NCRC also warns that until the GENIUS Act is effective and its implementing regulations are finalized, granting a national trust bank charter to a stablecoin issuer “will further fuel illicit finance and fraud.”

NCRC is a coalition of more than 700 community-based organizations, including local and state government agencies, faith-based institutions, fair housing and civil rights groups. NCRC works to create opportunities for people and communities to build and maintain wealth.

The NCRC first stated that while the OCC is empowered to charter national banks, that for the agency to consider charters for stablecoin issuers and fintech firms exceeds the scope of that power. The OCC must review the following factors in reviewing charter applications for national banks:

• maintaining a safe and sound banking system;

• encouraging a national bank to provide fair access to financial services by helping to meet the credit needs of its entire community;

• ensuring compliance with laws and regulations; and

• promoting fair treatment of customers, including efficiency and better service.

NCRC notes that the OCC may deny an application if the applicant presents significant supervisory, compliance, or Community Reinvestment Act (CRA) concerns. NCRC argues that granting Crypto.com a national trust bank charter would establish a fiduciary relationship between FDNTB and consumers nationwide, allowing FDNTB to offer custodial services, hold consumer funds, and manage settlements. The group concludes that the OCC must reject Crypto.com’s application for a national trust bank charter due to serious concerns regarding the applicant’s disregard for enforcement, governance, compliance, and consumer protection laws.

The proposed bank, Foris DAX National Trust Bank (FDNTB) “is not a trust company but is seeking to engage in core banking activities, including facilitating payments and taking deposits, without obtaining deposit insurance or becoming subject to consolidated Federal Reserve supervision: “granting these firms limited-purpose trust charters would blur the statutory boundaries of what constitutes a ‘bank,’ undermine the credibility of the national charter, and heighten systemic risk by allowing them to operate under a lighter regulatory regime.”

While considering the application, the OCC must consider whether the proposed institution:

• has organizers who are familiar with national banking laws and regulations or Federal savings association laws and regulations, respectively;

• has competent management, including a board of directors, with ability and experience relevant to the types of services to be provided;

• has capital that is sufficient to support the projected volume and type of business;

• can reasonably be expected to achieve and maintain profitability;

• will be operated in a safe and sound manner; and

• does not have a title that misrepresents the nature of the institution or the services it offers.

Crypto.com’s history of enforcement actions and litigation creates significant supervisory and compliance concerns, and shows a disregard for regulatory compliance, consumer protection, governance, and risk management, alleges the NCRC. NCRC also argues in the letter that granting a national trust bank charter to Crypto.com would enable regulatory arbitrage that harms communities and consumers. Crypto.com’s management record and inadequate internal controls “fall short of the standards the OCC is required to evaluate when reviewing charter applications for national banks” argues the NCRC.

GENIUS Act implementation. Before the OCC considers granting a charter to any stablecoin issuer, there are rules and regulations implementing provisions of the GENIUS Act that must be in place by the federal banking regulatory agencies, according to the letter. The Fed is authorized to issue regulations related to reserve requirements and liquidity standards for federally regulated stablecoin issuers. The Federal Deposit Insurance Corporation may issue rules to ensure that insured depository institutions issuing stablecoins comply with capital and risk management standards. The Department of the Treasury is authorized to issue rules on consumer protection, including public disclosures of reserve composition, redemption procedures and prohibited marketing practices. The Financial Crimes Enforcement Network is authorized to issue implementing regulations under the Bank Secrecy Act to ensure anti-money laundering and sanctions compliance by stablecoin issuers. The Secretary of the Treasury is granted broad authority to issue rules and guidance necessary to carry out the act.

NCRC also argues that the OCC must place a moratorium on all stablecoin company charter applications until laws and regulations can effectively address safety and soundness concerns and protect consumers against fraud.

Companies: Bridge National Trust Bank, N.A.; Crypto.com; Stripe, Inc.

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