The OCC denied Wise’s application this week for a US full bank charter citing AML/CFT risks, despite approving similar charters for digital asset companies in the last year.
U.K.-based payment processor has chosen to resubmit under GENIUS Act framework which would provide clearer oversight rules specifically designed around stablecoin and tokenized deposit product structures rather than trying to fit traditional banking model onto what regulators now categorize as inherently crypto-adjacent businesses facing their own unique compliance challenges given how quickly regulatory interpretations are shifting.
Industry observers note the timing suggests OCC is still determining appropriate supervisory approach for institutions operating at intersection of cross-border payments infrastructure with on-chain settlement or redemption capabilities enabling users to move assets seamlessly between fiat and programmable value systems without intermediation by traditional correspondent banking networks that currently impose numerous friction points.
