Community Banks Challenge OCC Over Cryptocurrency Charters
Community banks have challenged cryptocurrency regulations in a lawsuit filed by The Independent Community Bankers of America (ICBA) against the Office of the Comptroller of the Currency (OCC).
The ICBA, which represents community banks with less than $10 billion in assets, argued that the OCC's decision to grant limited bank charters to cryptocurrency firms exceeds its regulatory authority.
The group claimed that the OCC must revoke a recent rule and related guidance smoothing the way for crypto firms to apply for national trust bank charters. They argue that this move grants legitimacy to crypto firms without sufficient safeguards, putting consumers at risk.
ICBA President and CEO Rebecca Romero Rainey stated, 'American consumers reasonably expect a federally chartered bank to carry federal protections. Digital assets held at a crypto firm operating under a national trust charter do not carry those important safeguards.'
The OCC has granted several such charters to firms primarily engaging in cryptocurrency activities and other fintechs since President Donald Trump's term.