ICBA Sues 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 issuance of crypto trust charters. The ICBA argues that these charters allow crypto firms to operate within the federal banking system without adhering to the same rules and safeguards as traditional banks.

The lawsuit targets the OCC's final rule issued on March 2 and its Interpretive Letter No. 1176. ICBA president and CEO Rebeca Romero Rainey stated that Congress did not create national trust charters as a side door for crypto firms seeking the credibility of a federal bank charter without its obligations.

The ICBA is concerned that digital assets held by crypto companies operating under a national trust charter do not receive the same federal protections as those held in an insured depository institution. The group also argues that traditional banks are subject to capital, liquidity, and supervision requirements that are not applied equally to trust banks.

The lawsuit specifically targets Protego Holdings Corp.'s national trust bank charter, which was conditionally approved in February 2026. ICBA opposed the approval due to Protego's flawed risk and control functions, as well as its governance structures lacking independent oversight.