The OCC announced it will continue to encourage new bank formation, reversing a decade-long trend that saw fewer than four applications per year between 2011 and 2014. In the last 18 months, the agency has received 40 applications, including the first full-service national bank in five years, Erebor Bank, N.A., backed by Founders Fund investors including Palmer Luckey and Peter Thiel. Major crypto companies including Ripple, Circle, Crypto.com and Paxos have received conditional approval, while Coinbase’s application remains under review. The ICBA and ABA have opposed these approvals, particularly regarding rewards that crypto companies want to pay to stablecoin holders, which could erode traditional banks’ deposit base. The OCC, however, maintains its position in favor of opening the federal banking system to digital asset activities.
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