The Office of the Comptroller of the Currency rejected Wise's application for a national bank charter this week, citing anti-money laundering and counter-terrorism financing risks. The denial marks a shift from the OCC's recent approval pattern for digital asset firms seeking similar charters.
Wise now plans to resubmit under the GENIUS Act, legislation designed to streamline the charter process for fintech and digital asset companies. The UK-based payments firm faces regulatory headwinds despite its established position in cross-border remittances and foreign exchange services.
The OCC's rejection stands out given its approval of charters for companies with more direct crypto exposure. Block and Kraken both received OCC approval for digital asset banking services in recent years. The agency's reasoning around Wise's AML/CFT compliance contradicts its track record of greenlighting riskier applicants in the digital asset space.
The GENIUS Act offers Wise a clearer regulatory pathway. The legislation creates a special purpose national bank charter tailored for fintech operations, with streamlined approval requirements. Rather than proving compliance through traditional banking frameworks, applicants demonstrate robust financial safeguards specific to their business model.
Wise's resubmission strategy reflects broader fintech frustration with inconsistent OCC scrutiny. The payments company processes billions in cross-border transfers annually and maintains substantial compliance infrastructure. Yet the agency focused on theoretical AML risks rather than documented track record.
This rejection and resubmission pattern reveals the OCC's ongoing struggle to balance innovation promotion with regulatory caution. The GENIUS Act exists precisely because traditional charter pathways create delays and unpredictable outcomes for fintech firms.
For Wise, resubmission under GENIUS Act rules improves odds significantly. The legislation's framework addresses regulator concerns while removing subjective judgment from the approval process. Success here would validate the GENIUS Act