Crypto Council Backs OCC Charters Amid Bankers' Lawsuit
The Crypto Council for Innovation (CCI) has voiced support for the Office of the Comptroller of the Currency’s (OCC’s) decision to grant national trust charters to several crypto companies, despite a lawsuit challenging the move. The Independent Community Bankers of America (ICBA) filed the lawsuit, arguing that the OCC approved these charters without adequate safeguards or compliance with standard banking requirements.
CCI CEO Ji Hun Kim criticized the ICBA’s legal action, calling it an effort to resist innovation and competition in financial services. The lawsuit, filed in the US District Court for the District of Columbia, claims that the OCC’s approvals allow crypto firms to bypass key banking obligations such as the Community Reinvestment Act, capital standards, and FDIC insurance.
The OCC has approved or conditionally approved applications from companies like World Liberty Financial, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. The approval for World Liberty Financial, under OCC head Jonathan Gould, has faced particular scrutiny due to its ties to the Trump family and alleged connections to the royal families of the United Arab Emirates.
Lawmakers have also raised concerns, suggesting that crypto exchanges seek bank charters to avoid fundamental safeguards. Despite the criticism, the CCI continues to back the OCC’s decisions, emphasizing the importance of fostering innovation in the financial sector.