ICBA Sues OCC Over Crypto 'Side Door' into Banking System
The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), challenging its authority to grant national trust bank charters to cryptocurrency companies. The ICBA argues that the OCC has exceeded its authority by allowing crypto firms to obtain federal bank charters without the usual obligations, such as FDIC insurance and capital standards.
The lawsuit centers on a March 2026 final rule tied to Interpretive Letter No. 1176, which allows crypto companies to conduct substantial non-fiduciary activities under a national trust charter. The ICBA claims that this practice creates a 'side door' into the banking system for crypto firms.
The ICBA also points out that digital assets held at a crypto firm operating under a trust charter do not carry the federal protections customers expect from a chartered bank, creating a consumer-protection gap. The lawsuit singles out Protego Holdings, whose conditional charter the ICBA wants vacated due to governance and risk-control shortcomings.