Community Banks Sue OCC Over Crypto Trust Bank Charters
Community banks are suing the Office of the Comptroller of the Currency (OCC) over its decision to grant national trust bank charters to crypto companies, arguing that this expansion of authority exceeds the OCC's authority under the National Bank Act.
The Independent Community Bankers of America (ICBA) filed the lawsuit in the US District Court for the District of Columbia, specifically targeting the OCC's March 2, 2023 final rule and Interpretive Letter 1176, which the ICBA claims improperly broadened the activities that can qualify for a national trust bank charter.
The ICBA is also challenging the OCC's approval of Protego Holdings Corp.'s conditional charter, arguing that this approval was unlawful. The lawsuit comes as the OCC has significantly increased its involvement with digital asset companies, with Comptroller Jonathan Gould stating that the agency has received 40 new bank charter applications since the current administration took office, with 23 involving some form of digital asset activity.