Community Bankers Challenge OCC Over Crypto Trust Charter Rule

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), challenging the regulator’s authority to grant national trust bank charters to crypto firms. The ICBA argues that the OCC overstepped its legal boundaries by allowing non-fiduciary crypto companies to operate as national trust banks without adhering to traditional banking regulations.

The lawsuit, filed on October 2, 2026, in the District of Columbia’s federal district court, targets three specific OCC actions: its National Bank Chartering final rule from March 2, 2026, Interpretive Letter 1176 issued in January 2021, and the conditional charter granted to digital asset firm Protego in February 2026. The ICBA seeks to have these actions declared unlawful and vacated, arguing that crypto trust banks evade key regulatory safeguards like deposit insurance and state consumer protection laws.

ICBA President and CEO Rebeca Romero Rainey emphasized that the OCC’s actions create a regulatory loophole, allowing crypto firms to bypass essential federal protections. She noted that Americans assume federal charters come with federal safeguards, but digital assets held at crypto trust banks do not. The complaint also highlights that two member banks have already lost significant business to crypto firms with conditional OCC approval.

The OCC defended its stance, asserting that the change clarifies the longstanding authority of national trust banks to engage in non-fiduciary activities. The agency pointed out that existing national trust banks manage close to $2 trillion in assets under custody or safekeeping. Notably, Circle received final approval for its national trust bank in July 2026.