ICBA Challenges OCC Over Crypto Bank Charters

A new regulatory dispute is brewing in the US as the Independent Community Bankers of America (ICBA) has sued the Office of the Comptroller of the Currency (OCC) over its decision to allow cryptocurrency companies to apply for national trust bank charters.

The lawsuit, filed on October 2 in the U.S. District Court for the District of Columbia, argues that the OCC exceeded its statutory authority by creating a pathway for cryptocurrency companies and other fintech businesses to obtain national trust bank charters.

According to ICBA, customers could misunderstand what federal charter status means when dealing with crypto companies, as digital assets held by these firms do not carry the same federal protections associated with deposits at traditional banks.