Wise to Reapply for U.S. National Trust Bank Charter Under GENIUS Act Framework After OCC Rejection

Smart plans to submit a brand new software for a U.S. nationwide belief financial institution constitution underneath the GENIUS Act framework after regulators rejected its unique proposal, marking a strategic pivot because the fintech adapts to a quickly altering U.S. funds panorama.

The London-based cash switch firm stated the U.S. Workplace of the Comptroller of the Forex (OCC) denied its software as a result of it was not suitable with the Federal Reserve’s up to date insurance policies governing entry to cost system grasp accounts. Regardless of the setback, Smart stated it stays dedicated to acquiring a federal belief constitution and believes the brand new stablecoin regulatory framework provides a extra viable path ahead.

The announcement despatched Smart shares down as a lot as 10% in London buying and selling on Friday as traders digested the delay within the firm’s U.S. banking ambitions.

Smart plans to resubmit nationwide belief financial institution software underneath GENIUS Act framework

Why Smart’s Software Was Rejected

Wise initially utilized for a nationwide belief financial institution constitution in June 2025 to achieve direct entry to Federal Reserve cost infrastructure. Such a constitution would have allowed the corporate to settle U.S. greenback funds instantly by the Fed, decreasing reliance on middleman banks and enhancing cost effectivity.

Nevertheless, whereas the appliance was underneath evaluate, the Federal Reserve considerably modified its method to cost system entry.

Smart stated its unique proposal trusted acquiring a Federal Reserve grasp account, however that technique turned unworkable after the Fed successfully paused entry for uninsured belief banks whereas creating a brand new framework for “cost accounts.”

“In consequence, the method in our software turned non-viable,” the corporate stated.

The OCC’s July 21 determination additionally referenced historic compliance points contained in Smart’s unique submitting, though the corporate stated these issues have since been addressed.

Turning to the GENIUS Act

As a substitute of abandoning its plans, Smart intends to submit a revised software underneath the framework established by the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act.

The legislation created the primary complete federal regulatory regime for cost stablecoins, offering clearer guidelines for reserve-backed digital {dollars} and establishments searching for to function throughout the sector.

Smart stated its funds infrastructure is already designed to work alongside each conventional banking rails and blockchain-based cost networks, making it nicely positioned to function underneath the brand new regulatory surroundings.

The corporate pressured that the transfer doesn’t symbolize a significant shift towards changing into a stablecoin enterprise. Reasonably, it displays a need to stay versatile as digital asset funds change into more and more built-in into the monetary system.

William Blair analysts stated they don’t count on Smart’s core technique to alter, noting that the corporate stays centered on reducing the price of worldwide funds no matter whether or not transactions finally journey over typical banking infrastructure or blockchain-based networks.

Compliance Program Has Improved

The OCC additionally highlighted compliance issues relationship again to a multi-state consent order issued in 2025 over deficiencies in Smart’s anti-money laundering (AML) danger administration program.

Smart stated its enterprise and compliance operations have developed considerably for the reason that unique software was submitted greater than a yr in the past.

In keeping with the corporate, it has strengthened its AML controls, enhanced inside monitoring techniques, and improved buyer security processes in response to regulatory suggestions obtained all through the appliance evaluate.

Smart emphasised that the OCC’s determination was primarily based largely on historic points mirrored within the unique software slightly than its present compliance framework.

Importantly, the rejection has no impression on Smart’s day-to-day operations. The corporate will proceed serving U.S. clients by its current cash transmitter licenses whereas making ready its revised belief financial institution software.

A Altering U.S. Regulatory Surroundings

Smart’s determination comes as U.S. banking regulators more and more embrace federally regulated digital asset companies following the introduction of the GENIUS Act.

Over the previous a number of months, the OCC has permitted or conditionally permitted nationwide belief financial institution charters for a number of crypto-focused corporations, together with Circle, BitGo, Coinbase, Crypto.com, Laser Digital Nationwide Belief Financial institution, and Connectia. Conventional monetary establishments similar to Morgan Stanley and Charles Schwab have additionally begun exploring stablecoin-related banking alternatives.

In the meantime, Circle just lately obtained official nationwide belief constitution approval, becoming a member of BitGo and Anchorage Digital amongst federally chartered digital asset establishments.

The regulatory surroundings has shifted significantly since Smart first submitted its software, making a revised submitting extra sensible than making an attempt to revive its unique proposal.

The OCC permitted Ripple’s software to constitution a nationwide belief financial institution

What It Means for Smart

Though the rejection represents a short-term setback, analysts view it primarily as a consequence of adjusting regulation slightly than a rejection of Smart’s long-term enterprise mannequin.

William Blair famous that direct entry to Federal Reserve cost rails would have strengthened Smart’s U.S. funds infrastructure, however acknowledged that current Fed coverage adjustments have successfully delayed comparable ambitions for a lot of uninsured belief banks.

Smart believes a brand new software constructed across the GENIUS Act will higher replicate as we speak’s regulatory framework whereas positioning the corporate for future progress as digital property and conventional monetary infrastructure proceed to converge.

For now, the fintech stays centered on increasing its low-cost worldwide funds platform whereas pursuing a constitution that might ultimately present extra environment friendly entry to the U.S. banking system.