According to a report by The Guardian, the Bank Policy Institute, which represents JPMorgan Chase, Goldman Sachs, Citigroup, and other big banks, is planning to sue the OCC.
- The Guardian’s report said that the lawsuit is under consideration because crypto firms are not subject to the same stringent regulations as the banking industry, which could be a threat to the U.S. financial system.
- The narrative is similar to JPM CEO Jamie Dimon’s commentary from last week, when he said that crypto and banks should be on a “level playing field.”
- The OCC has so far only granted conditional approval to a handful of companies to come under the national trust bank charters.
- Kraken’s application was the first to attain approval for a “limited” federal master account last week.
Wall Street is reportedly gearing up to take action against the U.S. Office of the Comptroller of the Currency (OCC) to prevent it from expanding banking charters to accommodate cryptocurrency companies.
According to a report by The Guardian, the Bank Policy Institute (BPI), which represents 40 of the biggest banks in America, including JPMorgan Chase (JPM), Goldman Sachs (GS), and Citigroup (C), is planning to sue on behalf of its clients.
The move comes after the OCC granted conditional approval for national trust bank charters to a handful of crypto firms, including USDC issuer Circle Internet Group (CRCL), Ripple (XRP), BitGo, Fidelity Digital Assets, and Paxos.
Kraken’s application was the first to attain approval for a “limited” federal master account last week, making it the first to attain a bank charter recognized under both federal and state law.
Why Does Wall Street Have An Issue With Crypto Banks?
According to the report, the OCC is allowing crypto firms to function at the same level as banks without the same supervision and controls, which could undermine the U.S. financial system. As Jamie Dimon said during an interview last week, banks are seeking a “level playing field” with crypto firms entering the picture. According to him, crypto firms should be subject to the same regulations as banks if they want to give out rewards on stablecoins.
However, the Trump administration, including the President himself and his son Eric Trump, has pushed back against that narrative, stating that banks have regulations because they lend money against their deposits, which crypto institutions do not. President Trump accused the banks of holding the CLARITY Act “hostage,” while Eric Trump said they’re looking to protect their “low rate monopoly.”
Crypto Stocks, Tokens Rally Despite Threat
CRCL’s stock was up 2.6% in pre-market trade after Bitcoin (BTC) rallied to $71,000. Retail sentiment around the USDC issuer dipped to ‘neutral’ from ‘bullish’ territory over the past day. Meanwhile, retail sentiment around USDC fell to ‘bearish’ from the ‘neutral’ zone.
Coinbase (COIN), which has a revenue-sharing agreement with Circle for USDC, also moved higher in pre-market trade. COIN’s stock rallied 2.8% on Tuesday morning, with retail sentiment continuing to trend in ‘neutral’ territory over the past day.
XRP’s price rose 4.5% in the last 24 hours to around $1.40. Retail sentiment around the altcoin remained in ‘bearish’ territory over the past day.
The cryptocurrency market and the U.S. stock market rallied in overnight trade after President Trump said the war with Iran was “nearly complete” and would be “over soon” during a press conference in Florida.
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