Community Banks Sue OCC Over Crypto Charter Decision

A trade organization representing community banks has sued the US Office of the Comptroller of the Currency (OCC) over the regulator's decision to grant limited bank charters to crypto firms.

The Independent Community Bankers of America filed the suit in the US District Court for the District of Columbia, claiming the OCC exceeded its regulatory authority in granting charters to firms that primarily engage in crypto products.

The group argued that granting such charters to crypto firms grants legitimacy without sufficient safeguards, and that the OCC must revoke a recent rule and related guidance smoothing the way for crypto firms to apply for national trust bank charters.