NCLC joined various consumer organizations in a letter opposing the application by Circle Internet Group, Inc. (“Circle”) for a national trust bank charter under the name First National Digital Currency Bank, N.A. (“FNDCB”). Circle is a stablecoin issuer seeking to obtain a national bank charter. Granting a national trust bank charter to any stablecoin issuer would enable regulatory arbitrage that harms communities and consumers and create systemic risk. Any entity engaged in currency issuance and deposit-taking, including in the form of issuance of stablecoins, must be held to the same standards as traditional financial institutions. Until laws and regulations can effectively address safety and soundness concerns and protect consumers against fraud, the OCC must deny all stablecoin company charter applications.
Additionally, Circle’s history of enforcement actions and litigation creates significant supervisory and compliance concerns, and shows a disregard for regulatory compliance, consumer protection, governance, and risk management.
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