The American Banking Association opposes the bank license applications of Circle and other encryption companies.

According to reports, on July 18, the American Bankers Association, along with several banks and credit union groups, sent a letter to the Office of the Comptroller of the Currency (OCC), requesting a delay in the approval of banking license applications from encryption companies including Circle and Ripple. The letter indicated that the national trust bank model proposed by these encryption companies "fundamentally deviates" from traditional policy frameworks, and the related business plans lack sufficient public transparency, making it difficult for the public to assess.

The banking group emphasized that digital asset custody should not be viewed as traditional trust business, and if regulation is relaxed, it may lead to issues such as unfair capital requirements. In addition, Custodia founder Caitlin Long stated that this matter could trigger legal action, expressing concerns that traditional banks may use trust licenses in the future to evade regulatory obligations.