Wise, the UK-based cross-border payments company, plans to resubmit its application for a US banking charter under the framework established by the GENIUS Act, after regulators rejected its initial bid this week over compliance concerns.
Regulators Cite Compliance Risks
The Office of the Comptroller of the Currency (OCC) turned down Wise's charter application this week, pointing to concerns around anti-money laundering and countering the financing of terrorism (AML/CFT) safeguards. The decision came despite the regulator having greenlit comparable charters for a number of digital asset firms over the past year.
The rejection marks a setback for the fintech, which has been seeking to deepen its footprint in the US financial system. A national charter would give the company greater independence and reduce its reliance on partner banks to operate stateside.
A charter denial is a hurdle, not a dead end — and Wise appears determined to try again.
A Second Attempt Under GENIUS
Rather than abandoning its ambitions, Wise intends to file a fresh application, this time leaning on the provisions of the GENIUS Act. The legislation, which established a federal framework for stablecoins and related payments activity, has opened new pathways for companies looking to secure regulatory approval in the United States.
The move signals confidence that the company can address the shortcomings flagged by the OCC and align with the newer regulatory structure. For Wise, obtaining a charter remains a strategic priority as it competes in the crowded cross-border payments market.
Key context for the situation includes:
- The OCC has approved similar charters for digital asset companies in the last year.
- Wise's initial application was denied over AML/CFT concerns.
- The GENIUS Act offers a fresh regulatory route for the resubmission.
The outcome of the renewed effort could influence how other international fintech firms approach US market entry under the evolving rules governing stablecoins and digital payments.