Why Revolut's US Banking Bid Stays Stuck in Regulatory Limbo

Revolut filed an application back in March to launch Revolut Bank US. The company wants to offer a full suite of services, including deposit accounts, credit cards, and direct access to Fedwire. While many crypto firms have recently secured limited trust charters, Revolut is aiming for a much broader license. This approach subjects them to a much higher level of oversight than companies focused solely on digital asset custody.

Regulators are currently evaluating the firm based on traditional banking standards. They must ensure that Revolut can handle deposit insurance risks, maintain proper capital levels, and follow strict lending guidelines. Because Revolut is asking to act as a standard depository institution, their application includes obligations related to the Community Reinvestment Act and complex anti money laundering requirements.

Comparing Revolut to companies like Coinbase or Circle is not quite accurate. Those firms largely obtained charters to manage reserves or provide custodial services. Instead, the real benchmarks for Revolut are companies like Nubank and Upstart, which pursued similar full banking charters. The process shows that while the OCC is open to digital lenders, the bar for approval remains high.

Opposition from groups like Fair Finance Watch and inquiries from the Federal Reserve have complicated the review. Regulators are still weighing whether Revolut has the necessary management experience and financial stability to run an insured bank in the United States. Traders should watch for further updates from the OCC, as any final decision will signal how much room exists for digital first companies to enter the traditional banking sector.