ICBA opposes national trust bank charter application for Foris DAX

ICBA urged the OCC to deny Foris DAX National Trust Bank’s application for a national trust bank charter, saying it poses significant risks. 

Details: In a letter to the OCC, ICBA said FDNTB’s proposed business model is inconsistent with the statutory and regulatory purpose of the trust-only national bank charter and poses significant consumer protection risks.  

Mission Creep: ICBA said FDNTB’s proposed business plan would extend far beyond the charter’s intended purpose and create an unprecedented regulatory gap. 

More ICBA Advocacy: Responding to an influx of applications from nonbank fintechs, ICBA recently: 

• Urged the OCC to reject Sony Bank’s application for a national trust bank charter for a proposed subsidiary because its proposal to provide non-fiduciary custody of digital assets and to issue stablecoins to retail customers is outside the scope of the trust bank charter. 

• Opposed Coinbase’s application for a national trust bank charter for its subsidiary, Coinbase National Trust Co.  

• Published a blog post that says the applications from nonbank financial technology firms for national bank trust charters require the OCC to change course.  

• Urged the OCC to postpone the consideration of applications to form Ripple National TR Bank, Fidelity Digital Assets, and others, citing significant policy and legal questions over the applicants’ fiduciary activities and the departure from OCC precedent.  

• Asked the OCC to keep in mind several key principles when considering charter applications from digital asset providers, including their unique risks and need for sufficient supervisory and regulatory safeguards.