Zerohash, the Chicago-based crypto infrastructure firm that supports digital-asset services for traditional finance companies including Morgan Stanley’s E Trade, has had its application for a U.S. trust bank charter returned by the Office of the Comptroller of the Currency.
The move ended the current review process after the regulator deemed the filing “materially deficient” under OCC policy. Zerohash said it expects to submit a new application this month and is seeking a quick resolution.
Application process halted
The OCC’s action came last month and was described as a return of the application rather than a formal denial. Under the agency’s policy, a returned filing means the review is stopped because the submission is considered materially deficient.
That outcome sets Zerohash apart from the growing group of firms that have recently secured OCC trust bank charters tied to digital-asset activity. The article also noted that, in two other recent fintech cases, applicants were directly denied rather than having their filings returned.
Company says decision was coordinated
In a statement on Wednesday, Zerohash said the return was an administrative step that allows it to refile this month. The company said the approach was taken in coordination with the OCC and should not be read as a substantive judgment on the merits of its charter bid.
Zerohash also said the development does not affect its current business. According to the company, operations will continue under its existing regulatory approvals while it prepares a new filing.
Why the company matters
Zerohash provides backend crypto infrastructure for established financial firms, including Morgan Stanley’s E Trade platform. Its role in supplying the operational plumbing for those services has made its charter effort noteworthy as more digital-asset firms seek bank-like regulatory footing in the United States.
A national trust bank charter from the OCC has become a closely watched path for companies hoping to expand regulated digital-asset services. The returned filing leaves Zerohash outside the recent wave of provisional approvals that other trust bank applicants have received.
What comes next
The next confirmed step is a refiling. Zerohash said it plans to submit a new application this month and is aiming for a swift resolution with the regulator.
For now, the immediate facts are limited: the OCC has ended the current application on procedural grounds, Zerohash says the action was coordinated and non-substantive, and the company’s existing operations remain in place pending its next attempt.
Source: www.coindesk.com