Stripe is facing opposition in its bid for a national trust banking charter, which would allow the company to offer banking services while avoiding some regulatory requirements. The National Community Reinvestment Coalition (NCRC) has formally opposed this application, arguing that granting the charter would give Stripe undue legitimacy, especially considering its history of legal issues. The NCRC's letter highlights concerns over Stripe's compliance with consumer protection laws and its governance practices. The organization, representing various community-focused groups, emphasizes that Stripe's charter could blur the lines of what constitutes a bank and increase systemic risk by placing them under a lighter regulatory framework. The proposed bank, Bridge National Trust, stems from Stripe's recent acquisition of Bridge, a stablecoin infrastructure firm, for $1.1 billion. This new bank would enable Stripe to manage stablecoin reserves and conduct custody and issuance activities federally rather than through individual state licenses. The NCRC points out that if approved, Stripe could facilitate payments without Federal Reserve oversight, raising further regulatory concerns. The letter references past legal actions against Stripe, including a 2020 case where the Massachusetts attorney general found the company had facilitated payments for fraudulent activities, resulting in a $120,000 settlement and commitments to enhance fraud prevention measures. Stripe has not publicly responded to the NCRC's criticisms. Other cryptocurrency firms like Circle, Paxos, Ripple, and Coinbase have also sought charters from the Office of the Comptroller of the Currency, but none have yet been approved. The NCRC’s letter underscores a broader concern about how fintech companies are evolving within the banking sector and the implications for regulation and consumer protection.