ICBA Sues OCC Over Crypto Trust Bank Charter Approvals

The Independent Community Bankers of America (ICBA) filed a lawsuit on Friday in the US District Court for the District of Columbia against the Office of the Comptroller of the Currency (OCC), challenging the agency's decision to grant national trust bank charters to cryptocurrency companies. The community banking group argues that the OCC has exceeded the authority Congress delegated to it by allowing crypto firms to obtain charters designed for fiduciary activities without subjecting them to standard banking requirements.

ICBA president and CEO Rebeca Romero Rainey stated that the national trust charter was never intended to serve as a "side door into the banking system for crypto firms seeking the credibility of a federal bank charter." The lawsuit claims these charters allow crypto companies to bypass key obligations including Community Reinvestment Act compliance, 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.

Under President Donald Trump and OCC head Jonathan Gould, the agency has approved or conditionally approved multiple applications from crypto companies seeking trust charters to expand their operations 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 OCC had not responded to requests for comment on the lawsuit at the time of publication.

The lawsuit highlights growing tension between traditional banking institutions and the rapidly evolving crypto industry as regulators explore new pathways for digital asset companies to operate within the US financial system. The outcome of the case could have significant implications for how crypto firms access banking infrastructure and whether the trust charter model becomes a viable regulatory framework for the industry going forward.