Stripe is facing significant pushback regarding its application for a national trust banking charter. The National Community Reinvestment Coalition (NCRC) has raised concerns about the implications of this charter, arguing that it would allow Stripe to provide banking services while avoiding key regulations. The NCRC's letter to the Office of the Comptroller of the Currency (OCC) emphasizes Stripe’s history of legal issues, claiming the charter would grant the company undeserved legitimacy. The letter is addressed to Sebastian Astrada, the OCC's director for licensing, and urges rejection of the application based on Stripe’s track record with enforcement and consumer protection laws. The proposed charter would enable Stripe's new banking entity, Bridge National Trust, to manage stablecoin reserves and conduct custody and issuance of stablecoins under a federal framework. This would eliminate the need for state-level money transmitter licenses. The application was submitted in October, with plans for the bank to be based in New York City. NCRC highlights that approval of the charter could allow Stripe to move payments without oversight from the Federal Reserve, which poses risks by weakening the definition of a bank and subjecting the financial system to greater instability. The NCRC's letter references specific legal troubles Stripe has encountered, including a 2020 case where the Massachusetts attorney general found the company had enabled payments for a fraudulent cryptocurrency operation due to inadequate risk management. Stripe agreed to pay $120,000 and improve its fraud controls and employee training as part of that settlement. The letter also details multiple lawsuits against Stripe, including allegations of failing to protect customer privacy and data security.