U.S. Stablecoin Law Spurs Bank Charter Race

The GENIUS Act created the first U.S. federal framework for payment stablecoins, requiring permitted issuers to maintain full backing in highly liquid assets and meet disclosure and supervision standards. The law turns a national trust bank charter into strategic infrastructure, allowing crypto firms to bring reserve management, custody and settlement closer together. Control of those rails could also determine which companies become the financial gateway for automated commerce led by AI agents.

President Donald Trump signed the GENIUS Act on July 18, 2025. Circle had applied to the Office of the Comptroller of the Currency on June 30 to form First National Digital Currency Bank, which would oversee USDC reserves and offer institutional digital-asset custody. On Dec. 12, the OCC conditionally approved Circle’s application alongside proposals involving Ripple, BitGo, Fidelity Digital Assets and Paxos, bringing the batch to five while requiring each applicant to satisfy final conditions before opening.