XRP News Today: Cryptocurrency companies pursue federal trust licenses to connect with traditional financial systems

Crypto.com, a prominent crypto exchange, has followed Ripple and

in seeking a national trust bank charter, aiming to broaden its offerings under federal regulation, as reported by a . This step is part of a larger movement among digital asset companies to simplify their operations by avoiding the complexities of state-by-state regulations. With a federal charter, Crypto.com could provide trust and custody services across the United States without needing separate approvals from each state, a hurdle that has long complicated compliance for crypto businesses.

The national trust bank charter is a unique financial license that allows companies to function under a unified federal system, rather than dealing with a variety of state regulations. For Crypto.com, this could speed up the rollout of regulated custody and staking services for both institutional and individual customers. The company's application demonstrates its belief that the U.S. regulatory landscape can support crypto businesses while upholding compliance requirements.

This move is in line with the wider industry push to gain recognition within the traditional financial sector. Ripple and Coinbase, who have also applied for such charters, are among a growing group of crypto companies working to integrate more closely with the banking world. Securing a federal charter could help reduce operational barriers and build confidence among institutional investors who have been cautious due to the sector’s past instability.

The drive for federal regulation comes as authorities increase scrutiny of crypto custodians after notable failures like the downfall of Fortress Trust. Recently, Nevada regulators ordered Fortress to halt operations, citing major liquidity problems and failure to fulfill client commitments, according to a

. These incidents highlight the importance of strong compliance systems, which the national trust charter is designed to enforce.

For Crypto.com, the advantages go beyond regulatory streamlining. A federal charter could help the company compete more effectively in a market where security and reliability are crucial. Operating under a single regulatory framework may also attract a wider client base, including institutional investors like pension and hedge funds that demand strict compliance.

Yet, obtaining such a charter is not without obstacles. The Office of the Comptroller of the Currency (OCC), which grants national bank charters, has not yet set final guidelines for crypto custodians. Some critics say the current rules are unclear about how digital assets should be handled under federal banking laws. Crypto.com's application could spark further discussions with regulators to clarify these issues.

The move toward federal regulation also reflects the changing dynamic between crypto companies and established financial institutions. As firms like Ripple and Coinbase show a commitment to regulatory standards, they may help pave the way for digital assets to become more accepted in mainstream finance.