ICBA Sues OCC Over 'Fast-Track' Crypto Bank Charters
The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), alleging that the regulator is allowing cryptocurrency firms to enter the banking system without proper scrutiny. The ICBA claims that the OCC's March 2 final rule related to Interpretive Letter No. 1176 gives new powers to charter national banks that were not authorized by Congress.
The lawsuit argues that the rule and letter attempt to provide the OCC with authority to charter national banks for substantial non-fiduciary activities, which exceeds the agency's granted power. ICBA President and CEO Rebeca Romero Rainey stated that Congress did not create the national trust charter as a 'side door' into the banking system for crypto firms.
Paige Pidano Paridon, executive vice president and co-head of regulatory affairs at the Bank Policy Institute (BPI), responded to the ICBA's suit by saying that novel entities should be subject to the same scrutiny as other chartered institutions. BPI supports efforts to bring innovative products and services into the regulated banking ecosystem, provided that entities engaging in those activities are subject to the same rules and responsibilities.