• The OCC has returned Zerohash's application for a national trust bank charter rather than approving or rejecting it
• Zerohash says the move is administrative, coordinated with the regulator and not based on the merits of its proposal
• The company plans to submit a revised application focused on a narrower range of trust activities
• The OCC's guidance allows applications to be returned if information or governance arrangements are materially deficient
• Questions have been raised about compliance leadership disclosures and previous litigation involving the firm's compliance function
• The resubmission will be closely watched as crypto firms continue pursuing federal banking charters



The Office of the Comptroller of the Currency (OCC) has returned Zerohash's application for a national trust bank charter, pausing the cryptocurrency infrastructure provider's efforts to establish a federally regulated trust bank while leaving the door open for a swift resubmission.

The action, disclosed through the regulator's public filings rather than a formal announcement, represents the first known instance in the current wave of digital asset charter applications in which the OCC has returned, rather than approved or denied, a trust bank filing.

In a statement issued last week, Zerohash sought to downplay the significance of the decision, describing it as an administrative step rather than a judgment on the merits of its proposal.

"This approach was taken in coordination with the OCC and is not a substantive decision on the merits of our application, and it does not affect Zerohash's current operations, which continue under our existing regulatory approvals," the company said.

Zerohash added that it intends to refile its application this month and looks forward "to swift review of the resubmission."

The OCC's June guidance explains that applications may be returned if they are considered materially deficient.

The regulator said this can occur when applicants fail to provide sufficient information for the agency to determine whether statutory or regulatory requirements have been met.

Examples cited by the OCC include incomplete biographical or financial information, inadequate responses to requests for additional information, or insufficient detail regarding proposed products, governance arrangements, risk management frameworks and compliance infrastructure.

Neither the OCC nor Zerohash has disclosed which of those factors prompted the application's return.

Zerohash submitted its trust charter application in March, seeking authorization to provide a broad range of digital asset and fiduciary services.

The company has since decided to narrow the scope of its proposal, saying it will pursue "a sequenced approach to the authorization of services, with a more focused approval of national trust activities aligned with our intended rollout timeline."

The Chicago-based firm already operates under a range of existing regulatory approvals, including money transmitter and related licenses across 47 U.S. states, Puerto Rico and the District of Columbia.

It has also established itself as a significant provider of cryptocurrency infrastructure, with Morgan Stanley among its most prominent partners through digital asset services offered on the E*Trade platform.

The returned filing comes amid heightened scrutiny of national bank and trust charter applications involving fintech and digital asset firms.

Last month, the OCC denied Wise's application for a national trust bank charter, concluding that the organizers had failed to demonstrate sufficient familiarity with federal banking laws and identifying concerns relating to anti-money laundering compliance.

Earlier this month, the regulator also rejected Dutch neobank Bunq's application for a national bank charter, citing significant supervisory and compliance concerns.

Unlike those decisions, Zerohash's filing was neither approved nor rejected, leaving open the possibility that the company could address the OCC's concerns through a revised submission.

Questions have nevertheless emerged regarding the original application.

A review by Inner City Press identified what appeared to be inconsistencies in the filing's executive listings, including two different individuals being identified as Chief Compliance Officer in consecutive sections.

One executive, Adam Berg, is listed elsewhere in the application as Chief Financial Officer, while another executive, Erik Kiefel, serves as deputy Chief Compliance Officer and Chief Anti-Money Laundering Officer.

Additional attention has focused on the company's compliance function following litigation filed in California by former Global Chief Compliance Officer Edgar Guerra.

The former Federal Reserve examiner alleged that he raised more than 250 compliance concerns with Zerohash's board following regulatory inquiries after the collapse of cryptocurrency exchange FTX, including issues relating to anti-money laundering controls.

Guerra claims he was dismissed in 2023, in part to conceal those findings. The allegations remain claims made in ongoing legal proceedings.

The outcome of Zerohash's revised application will be closely watched across the digital asset sector as fintech firms continue seeking federal charters to expand regulated cryptocurrency services.