Community Banks Sue OCC Over Crypto Trust Bank Charters

The Independent Community Bankers of America (ICBA) filed a lawsuit against the Office of the Comptroller of the Currency (OCC) on Friday in the US District Court for the District of Columbia, alleging that the regulator overstepped its congressional mandate. The community banking trade group claims the OCC has improperly allowed cryptocurrency companies to obtain limited national trust bank charters, granting them the credibility of a US bank charter without subjecting them to standard banking requirements.

ICBA president and CEO Rebeca Romero Rainey stated that Congress did not create the national trust charter as a "side door into the banking system for crypto firms seeking the credibility of a federal bank charter without the Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to insured depository institutions." The ICBA is asking the court to return the OCC to its statutory limits. The OCC did not respond to a request for comment before publication.

Under President Donald Trump and OCC head Jonathan Gould, the agency has approved or conditionally approved multiple trust charters to expand crypto services in the US, according to a Cointelegraph report from August. However, these trust bank charters do not permit companies to accept deposits or make loans, distinguishing them from conventional commercial banks. The suit highlights ongoing tension between traditional banking institutions and the rapidly growing crypto industry as it seeks deeper integration into the US financial system.