Community Banks Challenge OCC Over Crypto Trust Bank Charters

US community banks have launched a lawsuit against the Office of the Comptroller of the Currency (OCC) over its approval of federal trust bank charters for digital asset firms.

The Independent Community Bankers of America (ICBA) filed the lawsuit in federal court in Washington, D.C. on February 2, arguing that the OCC's practice of granting National Trust Bank charters to non-traditional financial companies, including digital asset firms, exceeds its authority under the National Bank Act.

'Congress did not create the national trust charter to provide a workaround for digital asset companies,' said Rebeca Romero Rainey, ICBA President and CEO.

The ICBA is concerned about regulatory parity, as digital asset firms holding trust bank charters can operate as federally chartered financial institutions while remaining exempt from certain regulations that apply to conventional banks.