Rain seeks US trust bank charter days after OCC sued over crypto charters
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Stablecoin payments infrastructure provider Rain has applied to establish a national trust bank, named Rain National Trust Bank, headquartered in New York. The application was filed with the Office of the Comptroller of the Currency (OCC) and, if approved, would enable Rain to offer fiduciary custody of digital assets and US dollars, reserve management for stablecoin issuers, and the issuance and redemption of dollar-backed stablecoins. Former Square Financial Services CFO Brandon Soto is proposed as president and CEO, subject to OCC approval. This move comes amid a broader trend of crypto firms seeking bank charters, even as the Independent Community Bankers of America (ICBA) has sued the OCC over its crypto charter approvals.
Why it matters
The source indicates Rain’s application reflects growing demand in the crypto industry for federally regulated fiduciary custody and stablecoin services via national trust banks. The OCC’s willingness to grant such charters is contested by community banks, concerned about competitive imbalances and regulatory oversight differences. The outcome of this tussle may impact the regulatory landscape for crypto companies and their integration into the traditional banking system.
Key context
Over the past year, many crypto and payments companies have sought national trust bank charters to better serve digital asset clients. The ICBA filed a lawsuit against the OCC, challenging its authority and alleging that the OCC allows non-depository crypto trust banks to perform extensive activities with less regulation than traditional banks. The ICBA contends this framework benefits crypto firms unfairly and risks consumer misunderstanding regarding federal insurance on assets. The OCC has already conditionally approved or approved at least 21 trust banks, 13 of which are crypto-related.
Key numbers and entities
Rain National Trust Bank, Office of the Comptroller of the Currency (OCC), Independent Community Bankers of America (ICBA), Brandon Soto (proposed Rain bank CEO), Farooq Malik (Rain CEO), Modern Treasury (also applied for a trust bank charter), Crypto Council for Innovation (criticized ICBA lawsuit), at least 21 OCC-approved or conditionally approved trust banks, with 13 crypto firms among them.
What remains unclear
The source does not specify when the OCC might decide on Rain’s application or detail the exact services Rain plans beyond those broadly outlined. The progress and potential outcomes of the ICBA’s lawsuit remain uncertain. It is also unclear how the OCC might adjust its regulatory approach in response to these legal challenges or how widespread the acceptance of these crypto charters will become.