OCC

Trump’s crackdown on “debanking” is colliding with a core compliance problem for U.S. banks: the very policies his administration wants to curb have long given lenders a way to cut off customers they suspect of wrongdoing without violating federal secrecy rules.

Coinbase Global said it has received conditional approval from U.S. banking regulators for a national trust company charter, a move that could broaden the crypto exchange’s role in digital-asset custody and open the door to new business lines.

The Federal Trade Commission has warned four of the largest payment processors against denying customers access to financial services because of their political or religious views.

U.S. regulators on Thursday proposed easing bank capital rules, a move that would allow the country’s largest lenders to hold billions of dollars less in capital and mark a major win for the sector.

The OCC proposed a regulatory framework to implement the GENIUS Act, outlining requirements for stablecoin issuers and for certain stablecoin-related custody activities. 

Citigroup executives are increasingly optimistic they can complete the compliance work tied to the bank’s major regulatory consent orders later this year, according to Reuters.

Revolut has dropped plans to buy a U.S. lender as a means to get a foothold in the American market and will instead apply for a banking license from the Trump administration, the Financial Times reported. 

World Liberty Financial, the Trump family’s flagship crypto venture, said an affiliated entity has applied for a national banking license, The Wall Street Journal reported.

The U.S. regulator of national banks scaled back some of the compliance obligations it had imposed on Citigroup under a 2020 enforcement action that penalized the lender for inadequate risk controls and data-management practices, the Financial Times reported.

The Office of the Comptroller of the Currency has conditionally approved five national trust bank charters for firms focused on digital assets, in a move that brings more crypto-related activity into the federal banking system but under supervisory constraints.