Crypto.com Clears Key Regulatory Hurdle in Bid for Federal Banking Status

Crypto.com has made significant progress in its bid to become a fully-fledged national trust bank in the United States. The OCC has conditionally approved the company's application to charter a national trust bank, which would mark a major milestone for Crypto.com and provide a unified federal framework for limited-purpose fiduciary activities.

The approval is conditional on Crypto.com satisfying several requirements, including capital adequacy, governance, risk controls, and anti-money-laundering standards. If the company meets these conditions, it will be able to operate under direct OCC supervision, which would carry significant weight with institutional allocators.

Crypto.com's federal status would provide a competitive advantage in the market, as registered investment advisers, hedge funds, and corporate treasuries often require federally regulated counterparties for custody and settlement. The company's positioning as a qualified custodian of choice for institutions will resonate with capital allocators who have been hesitant to engage with lightly regulated crypto entities.