More Bank Charters, More Clarity

The OCC has granted conditional approval for five national trust bank (NTB) charters for institutions that will focus on innovative digital asset products and services. The approvals come at the end of the first year of the second Trump administration, as a wave of applicants seek the NTB charter for its federal preemption benefits and broad powers, and in anticipation of future GENIUS Act compliance. We expect OCC approvals for NTBs to continue and more applicants to pursue the strategy.

Before the approvals were granted, the OCC also clarified that various riskless principal transactions involving digital assets are permissible. National banks and federal branches of foreign banks may immediately rely on the clarification. Banks chartered by states that have wildcard statutes might also be able to leverage the interpretation.