The Office of the Comptroller of the Currency cited an incompatibility with new Federal Reserve requirements for payment system access as the primary reason for the rejection. Wise officials noted that the regulatory landscape had shifted significantly since their initial application in June of last year. With the Fed effectively pausing account access for uninsured trust banks, the firm’s original strategy became untenable.

Despite the setback, the company is already pivoting toward a new application under the GENIUS Act framework, which specifically governs digital assets such as stablecoins. Wise management maintains that their existing infrastructure is capable of integrating these assets alongside traditional payment rails. The regulator also highlighted a previous consent order regarding compliance violations, though the company claims to have since overhauled its internal safety processes to address those concerns.