Community Banks Challenge OCC Over Crypto Charter Approvals
The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), claiming that the regulator overstepped its authority in granting national trust bank charters to cryptocurrency companies.
The ICBA argues that these charter applications allow crypto firms to gain credibility associated with a federal bank charter while avoiding key banking obligations, such as capital and liquidity standards, FDIC insurance, and consolidated supervision.
According to the complaint, the OCC's decision allows companies to obtain national trust bank charters for substantial non-fiduciary activities, which goes beyond what Congress authorized.
The ICBA is seeking a court order to direct the OCC back to its statutory limits.