Stablecoin firm Circle wins final OCC approval to open national trust bank — 2026-07-10

## Short Segments Circle secures final OCC approval to open a national trust bank, marking a pivotal moment for stablecoin regulation. Meanwhile, the GENIUS Act is reshaping how US banks handle stablecoin risks, and Pulsar Money is launching a stablecoin payment app on Arc. Binance reports a shift to self-custody in the EU post-MiCA, UK Labour MPs push to ban crypto political donations, North Carolina recognizes CFTC preemption over prediction markets, and Polymarket files for regulated margin trading in the US. The GENIUS Act is forcing US bank boards to confront stablecoin risks. The impending implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, is fundamentally reshaping how American bank boards approach digital assets and regulatory compliance. This legislation, enacted on July 18, 2025, provides the first federal framework for stablecoins, marking a decisive shift in integrating blockchain-based payment infrastructure into the financial system. For banks, this presents both opportunities and challenges as they navigate the new regulatory landscape. The GENIUS Act allows banks to issue stablecoins as a core product line, pushing them to adapt to the digital dollar era. As banks prepare for this transition, they must balance innovation with compliance, ensuring they meet regulatory standards while exploring new digital asset opportunities. This shift could redefine the role of banks in the digital economy, making stablecoins a central part of their offerings. Pulsar Money chooses Arc to launch a stablecoin payment app. Pulsar Money has announced its exclusive launch on Arc, Circle's stablecoin-native Layer 1 blockchain. This move positions Pulsar as one of the first consumer-focused financial applications on the network, aiming to simplify stablecoin use with a mobile experience akin to traditional banking apps. Targeting the European market, Pulsar allows users to hold, spend, and exchange multiple fiat-backed stablecoins from a single app. By leveraging Arc's infrastructure, Pulsar aims to offer a seamless and regulated digital asset experience, potentially broadening stablecoin adoption among everyday users. This development highlights the growing integration of stablecoins into mainstream financial services, offering a glimpse into the future of digital payments. Binance co-CEO reports 70% of EU withdrawals went to self-custody post-MiCA. Following the MiCA deadline, Binance co-CEO Richard Teng revealed that 70% of EU user withdrawals moved to self-custody rather than MiCA-regulated platforms. This statistic raises questions about the effectiveness of MiCA regulations in protecting consumers, as many users opted for less supervised crypto storage solutions. Binance is now exploring new licensing paths in Europe while expanding its regulatory footprint in Asia. This shift underscores the ongoing tension between regulatory compliance and user autonomy in the crypto space, as platforms and users navigate the evolving landscape of digital asset regulation. UK Labour MPs push to permanently ban crypto political donations. Labour MPs in the UK are gathering support for amendments to a key bill that would permanently ban crypto political donations. This move follows a temporary ban enacted in March and comes amid a funding scandal involving Nigel Farage's Reform UK party. The proposed amendments aim to solidify the ban into law, reflecting growing concerns over the influence of crypto wealth in political funding. If successful, this legislation could significantly impact how political campaigns are financed in the UK, potentially reducing the role of crypto donations in the political arena. North Carolina passes a bill recognizing CFTC preemption over prediction markets. North Carolina has become the first US state to recognize the Commodity Futures Trading Commission's exclusive authority over prediction market operators. The new law, signed into effect on July 7, imposes a 6% tax on the net trading revenue of federally regulated prediction market platforms. This approach contrasts with other states that have pursued legal action against prediction markets, highlighting North Carolina's alignment with federal oversight. By acknowledging CFTC preemption, the state sets a precedent for how prediction markets might be regulated across the US, potentially influencing future state and federal regulatory strategies. Polymarket files applications to offer regulated margin trading in the US. Polymarket has filed to offer margin trading in the United States, a move that could allow traders to wager on events with less capital upfront. The application, submitted through its affiliate Coming Home GBA LLC, seeks futures commission merchant registration with the National Futures Association. This step follows Kalshi's earlier approval to provide margin trading, indicating a competitive push in the prediction market space. If approved, Polymarket's offering could attract a more sophisticated class of traders, enhancing the platform's appeal and potentially reshaping the landscape of prediction markets in the US. ## Feature Story Circle wins final OCC approval to open a national trust bank. Circle has received the final green light from the U.S. Office of the Comptroller of the Currency to establish the First National Digital Currency Bank, operating as Circle National Trust. This approval marks a significant regulatory milestone for Circle, placing the bank under direct federal supervision by the OCC. As a national trust bank, Circle National Trust will initially focus on institutional custody services, with plans to manage USDC reserves in a later phase. This development positions Circle to expand its role in the digital currency ecosystem, offering federally regulated services that could enhance trust and adoption among institutional clients. Circle's move follows a trend of crypto firms, including Ripple and BitGo, seeking federal charters to operate as trust banks, reflecting a broader shift towards regulatory compliance and institutional integration in the crypto space. By securing a full charter, Circle not only strengthens its regulatory standing but also sets a precedent for other stablecoin issuers aiming to align with federal banking standards. This approval could pave the way for increased institutional participation in digital currencies, as trust banks offer a regulated framework for managing and transacting stablecoins. Looking ahead, Circle's establishment of a national trust bank could influence how stablecoins are perceived and utilized within the financial system, potentially accelerating their integration into mainstream finance. As Circle prepares to launch its bank, stakeholders will be watching closely to see how this move impacts the broader landscape of digital currency regulation and adoption. With federal oversight, Circle National Trust could become a model for how stablecoin issuers navigate the complex regulatory environment, balancing innovation with compliance to drive the future of digital finance.