ICBA Sues OCC Over Crypto Charter Rule

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), claiming that the agency overstepped its authority by making it easier for cryptocurrency firms to obtain national trust bank charters.

The ICBA, which represents banks with less than $10 billion in assets, argues that this move puts small banks at a competitive disadvantage and allows crypto firms to operate without meeting the same standards as community banks.

The lawsuit targets an OCC rule issued on March 2 that clarified the ability of national banks to carry out non-fiduciary activities alongside fiduciary ones. The ICBA claims that this rule expands the agency's chartering powers beyond what is authorized by the National Bank Act.

ICBA President and CEO Rebeca Romero Rainey said in a statement, 'Congress did not create the national trust charter as a side door into the banking system.' She added that crypto firms are seeking the credibility of a federal charter without meeting the same standards as insured banks.