Tag: Regulatory Arbitrage
Wall Street Declares War on the OCC: JPMorgan, Goldman Sachs and Citigroup Weigh Lawsuit as Crypto Firms Gain Federal Bank Charters — 11 Approvals in 83 Days
The Bank Policy Institute — representing 40 US mega-banks including JPMorgan Chase, Goldman Sachs, and Citigroup — is preparing to sue the Office of the Comptroller of the Currency over its decision to grant national trust bank charters to Ripple, Circle, BitGo, Fidelity Digital Assets, Paxos and six other crypto and fintech firms. Eleven companies received conditional approvals or filed applications in just 83 days. The legal challenge centres on OCC Interpretive Letter 1176. A new OCC rule effective April 1, 2026 is forcing BPI's hand on timing. On March 5, the American Bankers Association separately rejected the White House's CLARITY Act compromise. The biggest legal confrontation in the history of US crypto banking access is now formally in motion.
Senate's Stablecoin Yield Deal Is Sealed: The CLARITY Act's Tillis-Alsobrooks-White House Compromise Bans Passive Yield, Permits Activity Rewards, and Sets a Late April Markup — The Most Consequential Regulatory Line in US Crypto Finance Since the GENIUS Act Is Now on Paper
On March 20, 2026, Senators Tillis and Alsobrooks, with White House adviser Patrick Witt, agreed in principle on stablecoin yield language for the CLARITY Act. Compromise text reviewed by crypto firms March 24, banks March 25. Section 404: passive yield on stablecoin balances prohibited; activity-based rewards permitted. CLARITY Act passed House 294–134 July 2025; cleared Senate Agriculture Committee January 2026. GENIUS Act (signed July 18, 2025) already bans issuer-level yield. Senate Banking markup targeted late April 2026. Senate floor deadline: May 2026. Missing May window risks legislative failure past 2026 midterms. Circle fell ~20% on yield restriction news. Coinbase stablecoin revenue: $364.1M Q4 2025. Coinbase has pushed back publicly.