Conditional sign-off from US regulators signals a turning point for stablecoins and crypto custody as federal oversight tightens its grip
Five of the crypto industry’s most influential firms have crossed a regulatory threshold long considered out of reach. Ripple, Circle, BitGo, Fidelity Digital Assets and Paxos have received conditional approval from the US Office of the Comptroller of the Currency to convert into federally chartered trust banks, a move that reshapes how digital assets sit inside the American financial system.
The approvals, disclosed late Friday, place crypto firms on a path once reserved for traditional finance and mark a sharp shift in Washington’s posture toward the sector.
A federal green light that took years to arrive
For much of the past decade, crypto companies operated on the edges of the US banking system, relying on state licenses and patchwork compliance. Federal trust bank status changes that equation.
The OCC, which charters national banks and trust institutions, granted the five firms conditional approval, meaning they must still meet capital, governance and risk standards before becoming fully operational under federal supervision.
This is not symbolic.
Federal trust banks can custody assets, facilitate payments and operate nationwide without juggling dozens of state regulators. For crypto firms, that reach is invaluable.
One short line says a lot: this is the front door, not the side entrance.
Who made the list, and why it matters
The firms approved represent different corners of the crypto ecosystem, but they share a common ambition: legitimacy at scale.
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Ripple, best known for its XRP-linked payments network
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Circle, issuer of the USDC stablecoin
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BitGo, a major crypto custodian
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Fidelity Digital Assets, backed by the traditional finance giant
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Paxos, a regulated stablecoin and infrastructure provider
All previously operated under state charters. Those licenses will now convert into conditional national trust bank status.
For Circle and Paxos, the implications are especially significant. Stablecoins, which aim to maintain a one-to-one peg with the US dollar, have drawn intense scrutiny from lawmakers worried about systemic risk and consumer protection.
Federal oversight changes the tone of that debate.
The GENIUS Act set the stage
This regulatory moment did not appear out of thin air.
Earlier this year, Congress passed the GENIUS Act, legislation that established a federal framework for stablecoins and opened a formal path for issuers to seek national charters. The law pushed stablecoin issuers toward bank-like supervision, including reserve requirements and disclosure rules.
Once the ink dried, applications followed quickly.
Circle, Ripple, Paxos and others moved to position themselves under the new regime, betting that compliance would unlock broader adoption rather than stifle growth.
Coinbase and several other firms have also filed for federal oversight, though their applications remain under review.
Basically, the race is on.
A regulator changes its tune
The OCC’s shift has been just as striking as the industry’s response.
Under previous leadership, the regulator was often viewed as wary, if not hostile, toward crypto. That stance softened after President Donald Trump returned to office, appointing Jonathan Gould to lead the agency.
Gould has signaled a more pragmatic approach, framing crypto as an extension of financial innovation rather than an existential threat.
“The OCC will continue to provide a path for both traditional and innovative approaches to financial services,” Gould said, adding that the federal banking system must keep pace with changes in finance.
That language matters.
It tells banks, lawmakers and markets that crypto is no longer being treated as a regulatory outlier.
What conditional approval actually means
Conditional approval is not the finish line.
The firms must still demonstrate they can meet federal expectations on governance, anti-money-laundering controls, cybersecurity and capital buffers. The OCC retains the authority to delay or revoke charters if standards are not met.
But history suggests momentum favors completion.
Anchorage Digital, the first crypto firm to receive a national trust bank charter in the US, went through a similar process. While not without friction, Anchorage’s approval created a template others are now following.
The difference this time is scale.
Five approvals at once signal intent.
Why Wall Street is paying attention
Traditional financial institutions have watched crypto’s regulatory limbo with caution. Unclear rules made partnerships risky and limited exposure.
Federal trust charters change the risk calculus.
Banks can now interact with crypto firms that sit under the same supervisory umbrella. Asset managers gain comfort around custody. Payment networks see fewer unknowns.
For Fidelity Digital Assets, the approval strengthens an already close tie between crypto infrastructure and legacy finance. Fidelity’s presence on the list is also symbolic, suggesting this is not a fringe experiment.
One sentence captures it: crypto just moved closer to the core.
Stablecoins move into sharper focus
Stablecoins are the quiet drivers behind much of this regulatory push.
Used heavily in trading, remittances and decentralized finance, dollar-pegged tokens now represent hundreds of billions of dollars in circulation globally. US policymakers have worried about what happens if one fails at scale.
By pulling issuers into a bank-like framework, regulators hope to reduce those risks without banning the products outright.
The table below highlights why federal oversight matters:
| Issue | Before federal charter | After trust bank path |
|---|---|---|
| Oversight | State-by-state | Single federal regulator |
| Reserves | Varied standards | Bank-level expectations |
| Transparency | Inconsistent | Mandatory disclosures |
| Market trust | Uneven | Higher institutional confidence |
This is not about enthusiasm. It’s about control.
Industry reactions mix relief and realism
Executives at the approved firms welcomed the decision, though few are celebrating prematurely.
Ripple CEO Brad Garlinghouse, who has spent years navigating legal and regulatory battles, described the approval as a sign that US policy is finally catching up with reality. Circle executives echoed that sentiment, framing federal supervision as a competitive advantage.
Still, costs will rise.
Compliance is expensive. Reporting is constant. Federal oversight leaves little room for improvisation.
Some smaller crypto firms worry that the bar is being set too high for anyone without deep pockets. Consolidation, they argue, may follow.
That concern isn’t new. It’s just louder now.
Politics linger in the background
The approvals land in a charged political environment.
Trump’s administration has pitched itself as pro-innovation, contrasting sharply with the previous era’s enforcement-heavy approach. Critics warn that easing crypto’s path into banking could expose taxpayers to new risks if things go wrong.
Supporters counter that bringing crypto inside the system is safer than leaving it outside.
Neither side is entirely wrong.
What’s clear is that crypto is no longer a theoretical policy problem. It’s operational.
What comes next
Over the coming months, the OCC will assess whether the five firms meet final conditions. Assuming they do, the US will soon have multiple federally chartered crypto trust banks operating nationwide.
That would have been unthinkable a few years ago.
For the industry, the message is clear: legitimacy now comes with paperwork, oversight and patience. For regulators, the task shifts from exclusion to supervision.
