Crypto infrastructure platform Zerohash’s move to become a federally licensed bank has been delayed. The Office of the Comptroller of the Currency (OCC) returned the company’s national bank trust charter application on July 17, 2026. The U.S. government agency deemed the proposal, submitted in early March 2026, to have material deficiencies, though it did not provide detailed public explanations regarding the specific points that compromised their application.
Zerohash is no small name. The company, with its last reported valuation exceeding $1.5 billion, is the crypto engine behind the services of various major financial institutions. Its client list is extensive, ranging from BlackRock, Franklin Templeton, Stripe, Interactive Brokers, and DraftKings, to the E*Trade stock trading platform under Morgan Stanley.
Despite its application documents being returned by the OCC, the company stated that this is merely an administrative process and routine coordination. They assured that the stall in federal licensing does not affect their clients’ ongoing business operations.
New CEO Seat Already Prepared
Before the OCC returned the licensing documents, Zerohash had already taken steps forward. The company had posted job openings under a new entity named “Zerohash National Trust Bank.” The company’s co-president, Stephen Gardner, even listed his title as CEO of the pending bank on his LinkedIn profile.
The OCC’s return of the files is different from an outright rejection letter. Facing this hurdle, Zerohash plans to resubmit its registration documents this month. They are opting for a more gradual approach, with an initial focus on securing core trust business activities.
The stall in federal licensing does not disrupt all of the company’s operations. Zerohash currently operates using state-level trust bank licenses. The core business of clients like E*Trade has no obligation to rely on a federal charter, so all transactions continue to run normally. Much earlier, the company had also explored acquisition talks with credit card provider Mastercard, although those negotiations ultimately fell through.
Why the Bankers Association Objects
The OCC’s decision to process crypto company applications has triggered protests from traditional banking. The Independent Community Bankers of America (ICBA) group complained about the banking regulator’s swift moves. Within the last 12 months, the OCC was found to have processed or approved a string of applications from Circle, Ripple, Paxos, BitGo, Fidelity Digital Assets, Crypto.com, Payoneer, and Zerohash.
Amid external protests, Zerohash has to deal with a complicated internal issue. Former Chief Compliance Officer Edgar Guerra filed a lawsuit over his termination. Guerra accuses the company of intentionally ousting him because he reported more than 200 compliance gaps in the system, including weaknesses in anti-money laundering program controls.
Revising federal application documents may simply be a matter of adjusting registration requirements on paper. However, proving to regulators and clients that the company’s infrastructure is free of legal loopholes is a much heavier task for Zerohash.
Reported by CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
