Crypto09 March, 20262 min read
Top US Banks Threaten to Sue OCC Over Crypto Bank Charters
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Bank Policy Institute is weighing suing the OCC over granting crypto firms bank charters Banks say OCC's crypto charters could put Americans and the financial system at risk
Banks challenge OCC crypto licensing
Major U.S. banks and industry groups are reportedly weighing legal action against the Office of the Comptroller of the Currency (OCC) as it moves to license cryptocurrency firms with national trust bank charters. Reporting indicates the Bank Policy Institute (BPI), which represents some of the country’s largest banks, is considering suing the OCC over its licensing decisions. The potential suits reflect growing industry pushback against the regulator’s approach to crypto firms.
“Major U.S. banks and industry groups are weighing litigation against the Office of the Comptroller of the Currency after the OCC began granting national trust bank charters to cryptocurrency firms.”
OCC crypto trust charters
The OCC has issued conditional national trust-charter approvals to a number of crypto and digital-asset firms. Industry observers say this step has accelerated the conflict.
Sources list approvals and conditional charters granted in December to firms including Ripple, BitGo, Paxos, and Fidelity Digital Assets. They note that several other crypto companies have sought similar federal trust charters since then.
OCC chartering dispute
Central to the legal and policy dispute is the allegation that the OCC has effectively reinterpreted federal chartering rules to favor tech-focused crypto firms by granting them trust-bank privileges without imposing the same capital and supervisory standards applied to conventional commercial banks.
“Traditional banking associations argue the OCC has effectively reinterpreted federal charter rules to let tech-focused firms obtain trust-bank privileges without meeting the same capital and supervisory standards required of conventional commercial banks, creating disparate regulatory treatment.”
Critics argue this reinterpretation creates disparate regulatory treatment and a major regulatory loophole that poses public policy risks.
Criticism of the OCC
State regulators and community bank groups have joined larger banks in criticizing the OCC's approach. The Conference of State Bank Supervisors warned that approving crypto and payments companies outside 'core federal banking laws' could undermine competition, consumer protection and financial stability.
Community bank associations have urged the OCC to change course. The BPI has so far declined to comment publicly on potential legal action, and the OCC did not respond to media requests.
Dispute over crypto oversight
Observers warn that litigation or regulatory reversal could reshape oversight of crypto firms and the broader banking landscape.
“BPI argues the OCC’s reinterpretation of federal licensing rules and its decision to grant conditional national trust bank charters to crypto firms could put Americans and the financial system at risk.”
Industry sources say the dispute centers on systemic risks and fairness in regulatory treatment, with opponents contending the OCC's decisions 'could put Americans and the financial system at risk' and create 'disparate regulatory treatment' between crypto-focused trust-chartered firms and traditional banks.