ICBA Sues OCC Over National Trust Bank Charters for Crypto Firms

The Office of the Comptroller of the Currency (OCC) is facing a lawsuit from the Independent Community Bankers of America (ICBA) over its decision to grant national trust bank charters to companies like Coinbase, Circle, and Crypto.com. The ICBA argues that the OCC does not have the authority to issue these charters to entities engaged in non-fiduciary activities.

According to the lawsuit, the OCBC has already approved a charter for Coinbase's proposed entity, which will specialize in custody and market infrastructure. However, the ICBA claims that this structure creates a different regulatory burden than traditional community banks.

The ICBA is challenging the regulatory framework used by the OCC for national trust banks, arguing that it does not align with Congress's intent when creating the charter.