EU Sets January 2027 Deadline for Crypto Firms to Remove Unapproved Stablecoins
EU regulators gave crypto exchanges until January 8, 2027, to stop offering unauthorized stablecoins like USDT, saying warnings aren't enough.
Block applied for an OCC national trust bank charter covering bitcoin and stablecoin custody; bitcoin traded in a narrow range on the news.
The filing drew only a muted response from bitcoin, which on September 8 slipped from session highs near 78,900 dollars to lows around 78,000 dollars — a move too small to be interpreted as a clear market judgment. That subdued reaction is consistent with what the news actually is: an application for a charter expresses intent, not regulatory sign-off, and investors have become used to a steady pipeline of OCC submissions from crypto-adjacent businesses over the last year. The more significant market catalyst remains a decision by the OCC, which has processed applications from Circle, Ripple, BitGo, Paxos and Revolut on a broadly similar schedule. Until that decision is made, the filing is best understood as reinforcing a structural story about institutional custody rather than as a near-term price driver.
---
Food for thought from earlier:
---
Block wants federal authorization to hold bitcoin rather than simply handle payments, and it is running against a growing list of fintechs to be the first to do so.
Summary:
According to Bloomberg, Jack Dorsey's fintech firm Block Inc has submitted a national trust bank charter application to the Office of the Comptroller of the Currency that would clear the way for custody and fiduciary services covering bitcoin and stablecoins.
The entity in question, Builders Bank and Trust, N.A., would be an uninsured national trust bank that takes no deposits. It would differ from a conventional retail or commercial lender by accepting no deposits and making no loans, the same setup used by the other crypto-focused trust charters the OCC has cleared during the past year. Should the charter come through, Lee Woolley, who is currently Block's Digital Asset Strategy Lead, is expected to take on the roles of president and CEO.
Block cited its operation of Square Financial Services and its wider digital-asset work as grounds for the request, and said the move fits its stated objective of broadening economic access.
The application comes as a wider cluster of fintech and crypto companies line up for national trust charters from the OCC. Revolut won conditional approval only last week, after Coinbase, Paxos, BitGo, Ripple and Circle had already received approvals or submitted applications. While the regulator has been broadly receptive to this influx, each application is still assessed separately and any new bank must satisfy conditions before it can open for business.
The news drew little market response. On September 8, bitcoin inched lower, falling from highs near 78,900 dollars to lows around 78,000 dollars — a limited decline indicating that traders do not yet view the filing as a standalone catalyst.
There is no guarantee of approval, and even if the charter is granted Block would still need to satisfy the OCC's conditions for opening before Builders Bank could start operations. The more consequential test will be whether the OCC runs the application through the same review process used for other crypto trust charter applicants, and on what timeline.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
EU regulators gave crypto exchanges until January 8, 2027, to stop offering unauthorized stablecoins like USDT, saying warnings aren't enough.
Japan has moved crypto under securities rules and plans a 20% tax rate, but ETFs and lower taxes are not yet in force; the US still leads.
Jonathan Spalletta convicted for stealing $53.3M from Uranium Finance, used funds on collectibles.
CFTC Chair Mike Selig said new rules will prevent another FTX-style collapse as the agency seeks comments on a new crypto exchange registration category.