Community Banks Challenge OCC Over Trust Charters for Crypto Firms

A trade group representing US community banks has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) over the regulator's decision to allow cryptocurrency firms to obtain national trust bank charters.

The Independent Community Bankers of America (ICBA) argues that the OCC is exceeding its authority by permitting crypto companies to use these charters for activities that are not properly constrained, effectively sidestepping protections and compliance expectations associated with insured depository institutions.

The ICBA says the OCC's approach grants crypto-related companies the legitimacy associated with a federal bank charter while allegedly avoiding key banking requirements such as Community Reinvestment Act (CRA) obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance.