Wise Seeks New Path Under GENIUS Act Following OCC Charter Rejection

Wise Seeks New Path Under GENIUS Act Following OCC Charter Rejection

Wise, the international money transfer service, has announced plans to reapply for a U.S. national trust bank charter under the GENIUS Act after the Office of the Comptroller of the Currency (OCC) rejected its initial request. The denial was attributed to significant compliance concerns, particularly in the areas of anti-money laundering (AML) controls and management qualifications.

OCC Denies Wise’s Initial Charter Application

The OCC’s rejection, which came on July 21, highlighted several issues including Wise’s inadequate financial crime controls and a lack of banking experience among its management team. The regulatory body pointed out that the proposed trust bank’s leadership did not demonstrate sufficient knowledge of national banking regulations or fiduciary services. This decision prompted Wise to reassess its strategy.

Transitioning to the GENIUS Act

In light of the OCC’s decision, Wise is shifting its approach and will base its new application under the GENIUS Act. This legislation, enacted in July 2025, allows for a federal licensing framework for payment stablecoin issuers. Wise’s initial charter plan had been formulated under a different set of assumptions regarding access to Federal Reserve payment systems, which are no longer viable due to the Federal Reserve’s pause on account access for uninsured trust banks.

Maintaining Operations Despite Regulatory Setback

Following the OCC’s denial, Wise confirmed on July 24 that its existing U.S. services will remain unchanged. The company will continue operating under money-transmitter licenses across 48 states and four territories. Additionally, Wise indicated that it has since enhanced its financial crime controls and plans to address the findings raised by the OCC in its new application.

Implications of the GENIUS Act and Future Prospects

The GENIUS Act introduces various requirements for payment stablecoin issuers, including reserve maintenance, redemption protocols, and compliance standards. While Wise has yet to announce plans for a new stablecoin, analysts at William Blair suggest that the pivot toward this regulatory framework may not signal a drastic change in Wise’s overall operations, with the company maintaining a focus on cost reduction in cross-border payments.

Competition in the Charter Process

Wise’s reapplication comes amid growing competition for federal charters in the digital asset space. Several companies, such as Circle and Ripple, have successfully navigated the OCC’s approval process, though many have faced opposition from traditional banking groups. The outcome of Wise’s new application will ultimately hinge on its ability to meet the stringent standards set forth by the OCC.