Community Banks Sue OCC Over Crypto Firm Trust Charters
The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), claiming that the agency's decision to grant cryptocurrency companies limited national trust bank charters exceeds its authority. 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.
Rainey stated that allowing companies to obtain trust charters without sufficient safeguards or compliance with normal bank requirements is a misuse of authority. The ICBA is asking the court to return the OCC to its statutory limits.
The lawsuit comes after Cointelegraph reported in August that the OCC had approved or conditionally approved multiple applications from crypto companies seeking trust charters to expand their services in the US. However, these trust bank charters do not allow companies to accept deposits or make loans, distinguishing them from conventional commercial banks.