Crypto Advocates Defend OCC Charters Against Bankers' Lawsuit
The Crypto Council for Innovation (CCI) has strongly supported the Office of the Comptroller of the Currency’s (OCC) decision to grant several charters to crypto companies, calling a lawsuit by the Independent Community Bankers of America (ICBA) an effort to hinder progress. CCI CEO Ji Hun Kim criticized the ICBA’s legal action, stating it was a ‘clear attempt to resist national trust charters, payments innovation, and competition in financial services.’
The ICBA filed the lawsuit on Friday in the US District Court for the District of Columbia, arguing that the OCC approved bank charters for crypto firms without adequate safeguards or compliance with standard banking requirements. ICBA president and CEO Rebeca Romero Rainey claimed that Congress did not intend for national trust charters to serve as a backdoor for crypto companies to gain banking credentials while avoiding obligations like the Community Reinvestment Act and FDIC insurance.
Among the approved or conditionally approved applications are those from World Liberty Financial, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. The approval for World Liberty Financial, led under OCC head Jonathan Gould, a Trump appointee, has faced scrutiny due to probes into the company’s alleged ties to the UAE’s royal families.
Lawmakers have expressed concerns over the OCC’s decisions, particularly the World Liberty approval, questioning the oversight and potential risks involved in granting these charters to crypto firms.