Large banking and credit associations of the United States turned to the management of the monetary circulation controller (OCC) with a request to suspend the consideration of applications for bank licenses from Circle, Ripple and Fidelity Digital Assets.

Professional associations representing the interests of US banks, including American Bankers Association (ABA), National Credit Union Administration (NCUA), Financial Services Forum and Bank Policy Institute (BPI), They saidthat the provision of bank licenses can undermine the stability of the traditional banking system and create unequal conditions for competition, since less stringent regulatory requirements can be presented to crypto companies.

“Banks are not against competition. They are against double standards that impose less strict regulation on a small group of market participants engaged in the same types of activities as banks, ” – said Surgical leader of the regulatory issues of the Bank Policy Institute Paige Pidano Paridon.

The appeal of credit and financial associations to the OSS emphasizes that the public versions of Ripple and Circle applications do not contain enough information to evaluate their business plans, operating models and compliance with regulatory requirements.

For example, in the Ripple application there are no key details about the management structure, financial forecasts and measures to comply with the requirements for combating money laundering (AML) and the financing of terrorism (CFT). The Circle application also does not provide clarity regarding its operating model or the ability to comply with strict standards applied to national banks.

The banking lobby fears that the hasty provision of licenses with cryptocurrency companies to provide “traditional banking services, such as payments”, will create a precedent for other companies that may follow them, which, according to the association, will represent a “significant risk for the entire US banking and financial system”.

Earlier, Ripple Director General, Brad Garlinghouse (Brad Garlinghouse), said his company applied to the OCC and will seek a license from the National Bank. Garlinghaus noted that the banking license will allow the company to directly work with the payment funds of the US Federal Reserve and will eliminate the company’s dependence on intermediary banks.