ICBA Challenges OCC Over Crypto Trust Charters

The Independent Community Bankers of America (ICBA) has sued the Office of the Comptroller of the Currency (OCC) over the agency's decision to grant national trust charters to crypto firms.

The ICBA argues that these charters allow crypto companies to operate outside traditional banking regulations, including federal deposit insurance and state consumer protections.

At issue is Protego Holdings Corp.'s conditional approval for a national trust bank charter, which the ICBA claims has 'severely flawed risk and control functions' and lacks independent oversight.

The lawsuit, filed in the U.S. District Court for the District of Columbia, seeks to declare the OCC's final rule and interpretive letter unlawful and vacate Protego's charter.