Erebor Bank Secures OCC Approval as Washington Shifts Its Crypto Banking Approach

Erebor Bank Approval

In a notable change in policy direction, the Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval to Erebor Bank, a new financial institution supported by high-profile technology leaders including Peter Thiel, Palmer Luckey, and Joe Lonsdale.

This approval, announced on Wednesday, signifies Erebor Bank as the first de novo bank to gain national authorization under Comptroller Jonathan Gould, according to the Financial Times. The bank, located in Columbus, Ohio, submitted its application on June 11, and the approval came after a four-month regulatory assessment.

The OCC granted preliminary conditional approval to Erebor Bank following an exhaustive review of its application. This charter was issued under the same rigorous standards applied to all other charter applications. https://t.co/9G7WkRRohN pic.twitter.com/tQhLqNbtM9 — OCC (@USOCC) October 15, 2025

“I am committed to a dynamic and diverse federal banking system, and today's decision is an important first step toward fulfilling that commitment,” Gould stated.

His comments signaled a shift from previous regulatory stances, indicating that the OCC “does not impose blanket barriers to banks wishing to engage in digital asset activities.” This is a strong indicator that U.S. banking regulators might be re-evaluating their prior restrictive posture concerning crypto-related financial services bolstered by the failures of several crypto banks in 2023.

Analysts consider this decision by the OCC a pivotal moment for the cryptocurrency sector, suggesting that Washington is open to innovative approaches in crypto banking, assuming banks exhibit strong compliance and risk management practices.

If Erebor successfully attains full authorization, it could provide a model for how regulators handle digital asset activities within federally chartered banks, bridging the gap between conventional banking and digital finance. The next big question is, what services will Erebor provide?

Erebor Bank: Filling the Void Left by SVB

Following the sudden collapse of Silicon Valley Bank (SVB) in 2023, which had significant repercussions for the startup and venture capital sectors, Erebor Bank aims to step into this financing gap and support America's economy.

Erebor plans to cater to clients in rapidly expanding tech fields, such as artificial intelligence, defense, manufacturing, and digital assets. They target payment processors, venture funds, and trading firms as potential customers.

With its charter, Erebor intends to function as a full-service national bank, delivering traditional deposit and lending services while incorporating digital asset operations within a carefully regulated environment.

🏦 Peter Thiel @peterthiel joins other tech billionaires in supporting Erebor, a newly established U.S. bank designed to address the funding gap created by the collapse of Silicon Valley Bank in 2023. #Erebor #PeterThiel https://t.co/x4NarhsPGz — Cryptonews.com (@cryptonews) July 2, 2025

The bank's application suggests it will hold around $1 million in cryptocurrency for transactional functions, indicating a cautious yet deliberate approach toward digital assets.

Unlike some predecessors that operated with more risk, Erebor aims for a model characterized by stability and compliance. A source familiar with the bank mentioned to the Financial Times that Erebor strives to be “a stable, low-risk, reliable bank doing standard banking functions without exposing everyone to undue risk.”

The collapse of SVB, along with other institutions like Silvergate, Signature Bank, and First Republic, left tech startups and crypto companies searching for dependable banking partners. This disruption compelled many to explore offshore or non-traditional options, a gap that Erebor intends to fill through institutional discipline and expertise from Silicon Valley.

However, Erebor is not yet fully operational. The OCC’s provisional approval means that the bank must address a series of compliance, cybersecurity, and capital adequacy evaluations, which could take several months before it is granted a final charter.

Implications of Erebor’s Approval on Crypto Policy

Erebor’s approval is part of a trend of increased regulatory activity in Washington.

Recently, President Donald Trump signed the GENIUS Act, a significant piece of legislation establishing oversight measures for stablecoin issuers. Meanwhile, Congress is engaged in discussions about broader regulatory frameworks for crypto markets and constraints surrounding central bank digital currencies (CBDCs).

✅ @SECGov Chair Paul Atkins has reiterated support for a crypto market structure bill, which the White House anticipates will pass by the end of 2025. #Bitcoin #Marketstructure #SEC https://t.co/cBbLNtKeS9 — Cryptonews.com (@cryptonews) September 23, 2025

This evolving policy landscape has encouraged various crypto-related companies, including Coinbase, Circle, and Ripple, to pursue national trust or banking charters with the OCC.

In May, the OCC released updated guidance affirming that banks are allowed to buy and sell cryptocurrencies maintained in custody at the request of customers, reversing prior restrictions.

📝 @Coinbase has applied to the U.S. Office of the Comptroller of the Currency (OCC) for a National Trust Company Charter. #Coinbase #Crypto https://t.co/WruBToItQd — Cryptonews.com (@cryptonews) October 4, 2025

Additionally, the new policy allows institutions to outsource crypto custody and execution services to third parties, provided they uphold strict safety and soundness standards.

This clarification marks a significant shift towards integrating cryptocurrency activities within federally regulated banks. Gould’s appointment in June further reinforces this direction. The former Bitfury executive and OCC veteran was confirmed by the Senate in a narrow 50–45 vote, becoming the first permanent head of the agency since 2020.

🏦 The U.S. Senate has confirmed former crypto executive Jonathan Gould as the OCC chief with a 50–45 vote, marking him the first permanent leader since 2020. #OCC #JonathanGould https://t.co/ipM7YhaG8B — Cryptonews.com (@cryptonews) July 11, 2025

His background in blockchain and digital assets is shaping a more open outlook towards innovation in the banking sector. Under his leadership, the OCC has removed references to "reputation risk" in its internal guidance, a change that is perceived as reducing barriers for banks involved in crypto services.

Despite these shifts, some lawmakers have raised concerns about the growing connections between political dynamics and cryptocurrency.

In August, Senators Elizabeth Warren, Chris Van Hollen, and Ron Wyden urged Gould to investigate potential conflicts of interest related to President Trump's personal involvement in cryptocurrency initiatives, particularly focused on a stablecoin known as USD1, issued by World Liberty Financial.

The senators questioned whether the OCC could maintain impartial regulatory oversight as it assumes a primary role in overseeing stablecoins under the GENIUS Act.

Key Takeaways

Erebor Bank has received preliminary conditional approval from the OCC, marking a shift in Washington's perspective on crypto-linked banking.
The bank aims to support high-growth sectors, integrating traditional and digital asset banking within a regulated framework.
Erebor’s model focuses on stability and compliance, contrasting with previous risk-heavy approaches.
The approval coincides with broader regulatory movements in Washington, including recent laws affecting stablecoin oversight.