Community Banks Sue OCC Over Crypto Firm Trust Bank Charters

A group of community banks has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) over its decision to grant limited national trust bank charters to cryptocurrency companies.

The Independent Community Bankers of America (ICBA), which represents thousands of community banks across the US, claims that the OCC's actions exceed its authority and pose a threat to the traditional banking system.

According to ICBA president and CEO Rebeca Romero Rainey, Congress did not intend for the national trust charter to be used as a 'side door' into the banking system for crypto firms seeking the credibility of a federal bank charter without the usual obligations and regulations that apply to insured depository institutions.

The lawsuit seeks to have the OCC return to its statutory limits and prevent cryptocurrency companies from obtaining national trust bank charters unless they meet the same requirements as conventional commercial banks.