Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
US Trust Charter Debate Heats Up Around Crypto Banks
Mar 17, 2026 | NCFA Insight | Banking Regulation And Digital Assets
Crypto Firms Push for Federal Banking Access
The debate is heating up over crypto and fintech access to US banking infrastructure since actions already taken by the Office of the Comptroller of the Currency (OCC) on Dec 12 2025 to conditionally approve five national trust bank charters for the following crypto firms: First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company. These charters allow firms to operate under federal oversight for custody and payments without taking deposits.
On Mar 17 2026, the Wall Street Journal reported that regulators are considering expanded crypto bank access, points to further expansion along this path rather than a new standalone rule. The direction is reinforced by guidance such as the OCC bulletin on digital asset and stablecoin activities, which shows regulators are already defining how non traditional firms operate within the federal banking perimeter.
It's significant because national trust charters give firms a way to scale across the US without relying on fragmented state licensing. They provide a regulated path into custody, payments, and fiduciary services under a single federal supervisor, without becoming full service deposit taking banks.
Banks Pushback Showing What's At Stake
Traditional banking groups are pushing back. In a statement opposing OCC conditional approval of five national trust bank charters, the Bank Policy Institute (BPI) said the decision left “substantial unanswered questions” about how these firms would operate and be supervised. BPI has also filed specific objections to trust charter applications, including its opposition to Connectia Trust’s national trust bank application and its opposition to BitGo Trust’s conversion to a national trust bank.
The concern is regulatory parity. Banks argue that if crypto and fintech firms can access core custody and payments infrastructure through trust charters without taking deposits, they may gain entry to important parts of the banking system without facing the same balance sheet requirements as full service banks. That tension is at the center of the policy debate. Who gets access to regulated infrastructure, and under what conditions.
What Fintech Operators Should Take From This
The US isn't waiting for a new trust charter rule. It's progressing through approvals, guidance, and case by case decisions that give some firms a clearer path into regulated custody, payments, and fiduciary services under federal oversight.
See: Bank Of Canada Signals Open Banking Timing Risk
A national trust charter can reduce dependence on fragmented state licensing, improve credibility with institutional partners, and make it easier to build around regulated payment and custody infrastructure. But know that the regulatory bar isn't low. Firms pursuing this path still need strong governance, compliance, risk controls, and operating discipline. Access is possible, but it is conditional.
Canada Has A Different Federal Entry Path
Canada is taking a different approach. In the US, the trust charter debate is about whether crypto and fintech firms can enter deeper into the banking system through a federal charter pathway. In Canada, the main stablecoin related framework sits inside securities and crypto trading platform oversight, not bank chartering. Canadian regulators use the term value referenced crypto assets (see CSA Staff Notice 21 333) and sets conditions around reserves, disclosure, redemption rights, assurance, and platform controls before these assets can be offered to clients. That means the US debate is mainly about institutional status and access to banking infrastructure, while the Canadian debate is mainly about asset eligibility and client protection on regulated platforms.
In Feb 2026, OSFI announced a targeted fast track approval framework for new entrants that will launch in June 2026 and give eligible applicants a quicker, clearer, and more predictable path into the federal system. The initial scope includes provincial credit unions seeking federal status and firms with technologically innovative or emerging banking models.
Talking Point
The real question is not whether crypto firms become banks. It is whether regulators create a consistent operating standard for firms that want access to core financial infrastructure without becoming full service deposit taking institutions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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