New Stablecoin Charter Could Hinge on National Bank Act Rewrite
A special-purpose banking charter for stablecoin issuers – one of the potential options for federal regulators to rein in the risks posed by the digital asset – may require a revamp of the National Bank Act, the statute that defines the “business of banking,” analysts said in an American Banker piece this week. The prospect of the Biden Administration urging Congress to authorize such a charter was recently reported by the Wall Street Journal. The National Bank Act stipulates that the core activities for national banks are taking deposits, making loans and facilitating payments. The same statute is at the center of legal disputes over the OCC’s FinTech charter that would allow firms engaging in only one of those activities to receive a banking charter and essentially act as a bank.
That is from an email I received from BPInsights.