Crypto · updated 1h ago · 2 min read
Independent Community Bankers of America Sues OCC Over Crypto Trust Bank Charters
ICBA filed suit accusing OCC of exceeding its authority on crypto trust charters. Lawsuit claims crypto charters could drain deposits and evade traditional banking safeguards.
All outlets report ICBA suing OCC to block trust-charter expansion for crypto.
5 of 6 outlets skipped it: OCC allegedly granted about 21 trust charters, at least 13 crypto.
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They characterise the alleged wrong differently: statutory overreach versus broad power expansion.
ICBA challenges OCC crypto charters
The Independent Community Bankers of America sued the Office of the Comptroller of the Currency in the U.S. District Court for the District of Columbia, arguing the OCC exceeded its regulatory authority by granting national trust bank charters to cryptocurrency firms.
The lawsuit asked the OCC to revoke a recent rule and related guidance smoothing the way for crypto firms to apply for national trust bank charters, and an OCC spokesperson declined to comment.
The ICBA argued the OCC’s decision grants legitimacy to crypto firms without sufficient safeguards, and ICBA President and CEO Rebecca Romero Rainey said, "American consumers reasonably expect a federally chartered bank to carry federal protections."
The national trust bank charters allow companies to manage and hold assets on behalf of customers and settle payments faster, while the charters do not allow the companies to take cash deposits or make loans.
Competing standards and oversight
The ICBA said the OCC’s approach creates a competitive disadvantage by letting crypto firms enter the U.S. banking system without being subjected to the same level of regulatory oversight faced by community banks.
PYMNTS reported that the lawsuit centered on the OCC’s March 2 final rule related to Interpretive Letter No. P1176, and PYMNTS reported that the ICBA asked a federal court to find both the final rule and the letter unlawful.P
CoinDesk reported that the ICBA accused the OCC of pushing "new and broad powers to grant licenses to national fiduciary banks that are not authorized by the National Bank Act," and CoinDesk reported that the OCC spokesperson said the agency "does not comment on litigation."
CoinDesk also reported that Paige Pidano Paridon of the Bank Policy Institute said, "BPI supports efforts to introduce new products and innovative services into the regulated banking ecosystem," provided entities are subject to the same rules and responsibilities as other authorized institutions.
What the lawsuit seeks
The American Banker reported that the ICBA alleged the OCC exceeded its authority by widening its ability to grant trust charters, and the American Banker reported that the ICBA said chartering crypto companies as trust banks could drain deposits away from the banking system.A
“This vast expansion of power creates a gaping hole in financial regulation.”
The American Banker reported that the ICBA filed in the U.S. ADistrict Court for the District of Columbia and said the group was challenging a "American consumers reasonably expect a federally chartered bank to carry federal protections" standard for digital assets held at a crypto firm operating under a national trust charter.
The American Banker also reported that the ICBA argued the OCC’s interpretive letter and its final rule "assert sweeping new powers to charter national trust banks that are not authorized by the National Bank Act," and the American Banker quoted the ICBA saying, "This vast expansion of power creates a gaping hole in financial regulation."A
DiarioBitcoin reported that the ICBA challenged an OCC rule issued on March 2, 2026 that created a pathway for entities whose business is not strictly fiduciary to access national fiduciary trust letters, including non-fiduciary custody arrangements.