After the OCC denied Wise's application for a national trust bank charter citing AML/CFT risks, the company plans to resubmit under the GENIUS Act framework. This move reflects broader regulatory chal
Wise, a UK-based payments firm, has decided to revise its strategy for obtaining a US national trust bank charter by applying under the provisions of the General and Uniform Money Instruments and Nationally Indexed Stablecoins (GENIUS) Act. The company faces ongoing regulatory challenges following an earlier rejection from the Office of the Comptroller of the Currency (OCC).
On July 25, Wise announced its intention to resubmit a new application for a national trust bank charter under the GENIUS Act framework. This decision comes after the OCC denied Wise's initial application this week due to concerns over an effective Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance program, as well as other illicit finance activity risks.
According to William Blair, a leading investment banking group, Wise will likely maintain its stance on payment stablecoins regardless of this new application. The company's focus remains on reducing cross-border transaction costs, rather than being tied specifically to any particular financial rail or technology platform.
The GENIUS Act was signed into law in July 2025 and aims to provide a regulatory framework for payment stablecoin providers within the United States. However, critical guidance from federal agencies has yet to be issued before its effective date of January 2027, creating uncertainty for companies like Wise.
Despite the GENIUS Act's passage, the OCC has already approved applications from several digital asset firms such as Circle, Ripple Labs, Crypto.com, and Coinbase. These approvals highlight the evolving landscape in US crypto regulation but also underscore the challenges faced by payment stablecoin providers seeking regulatory clarity.
This development is significant for both Wise and the broader stablecoin industry, reflecting ongoing efforts to navigate complex regulatory environments. Traders should monitor how other companies within this space adapt their strategies as well as any further guidance from regulators in the coming months.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.