ICBA Sues OCC Over Crypto Company Bank Charters

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) over the granting of national trust bank charters to crypto companies. The ICBA, which represents small and community banks in the U.S., argues that the OCC exceeded its authority in issuing these charters.

The association claims that crypto companies benefit from the credibility conferred by a federal bank license without facing the same requirements as small banks on capital, liquidity, supervision, and deposit insurance. This, they argue, puts community banks at a significant competitive disadvantage.

Crypto companies like Coinbase, Circle, and Crypto.com have pursued national trust bank status, but the ICBA's lawsuit is directed at the OCC, which grants the licenses. An OCC spokesperson declined to comment on the ongoing litigation.