ICBA Sues OCC Over Crypto Firm Charters: 'Side Door' into Banking System
The Independent Community Bankers of America (ICBA) has filed a federal lawsuit against the Office of the Comptroller of the Currency (OCC), challenging the regulator's authority to grant national trust bank charters to cryptocurrency firms. The lawsuit, filed in the U.S. District Court for the District of Columbia, asks the court to invalidate the OCC's March 2026 chartering rule, its 2021 Interpretive Letter No. 1176, and the conditional approval granted to digital asset firm Protego Holdings Corp.
The ICBA argues that Congress authorized trust charters for fiduciary functions, not for substantial non-fiduciary businesses such as crypto trading, lending, and asset administration. The group claims that crypto firms gain federal charter credibility without the obligations that apply to insured depository institutions, including Community Reinvestment Act requirements, consolidated supervision, capital and liquidity standards, and FDIC insurance.
The OCC has approved or conditionally approved 21 national trust banks under the disputed framework, at least 13 of which the ICBA identifies as crypto companies. The group notes that these institutions can compete nationally while avoiding obligations that apply to insured commercial banks. The ICBA is asking the court to 'return the OCC to its statutory limits.'