Circle has applied to the U.S. Office of the Comptroller of the Currency (OCC) to form a federally regulated national trust bank named First National Digital Currency Bank, N.A. This move aims to enable Circle to operate under direct federal regulation, similar to traditional banks. The bank would manage USDC reserves and provide institutional services, marking an effort to enhance regulatory compliance as U.S. legislation on stablecoins is considered. Audience anticipation surrounds regulatory developments, as a recent bill has progressed through the Senate, potentially setting new standards for dollar-backed stablecoins. Circle's CEO, Jeremy Allaire, emphasized that obtaining a trust charter would strengthen USDC infrastructure and align with new regulations for digital payment stablecoins. If approved, Circle would join other federally chartered entities like Paxos and Anchorage, allowing it to expand operations across state lines without multiple licenses. The OCC's review is pending, highlighting the increasing regulatory acceptance of digital asset companies.

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