ICBA Sues OCC Over Crypto Trust Charters, Claims 'Gaping Hole' in Regulation

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) over its approval of national trust charters for crypto companies. The lawsuit, filed on October 2, challenges the OCC's final rule and interpretive letter, which allow crypto firms to enter the federal banking system through a lighter form of national trust charter.

The ICBA argues that Congress did not intend for national trust charters to be used as a 'side door' for crypto firms seeking the credibility of a federal bank charter without its obligations. The group claims that the OCC has exceeded its authority by allowing companies to obtain national trust charters while conducting substantial activities that are not fiduciary in nature.

The ICBA is specifically targeting Protego Holdings Corp.'s national trust bank charter, which was conditionally approved in February 2026. The company provides digital asset custody, trading, lending, and issuance services. The ICBA argues that Protego's governance structures lack independent oversight and that the OCC did not respond to concerns about the company's risk and control functions.

The lawsuit could have significant implications for the crypto industry, as it challenges the OCC's approach to regulating crypto companies. The ICBA is asking the court to declare the final rule and interpretive letter unlawful and to remove Protego's approval.