ICBA Sues OCC Over National Trust Bank Rule for Crypto Firms

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in federal court in Washington, seeking to overturn the OCC's national trust bank rule.

The rule, finalized in February and effective April 1, allows fintech and crypto companies to apply for national trust bank charters, which would grant them access to a wider range of financial services and activities.

The ICBA argues that the OCC has exceeded its authority by widening the scope of limited-purpose trust charters to include non-depository, non-fiduciary crypto businesses, and that the rule would allow these companies to operate under a lighter framework than insured banks.

The OCC has already approved or conditionally approved 21 trust banks, 13 of which are tied to crypto. Among the approved crypto-linked national trust banks are BitGo, Fidelity Digital Assets, First National Digital Currency Bank, Paxos, and Ripple-linked applicants.

The ICBA is seeking to vacate the rule and obtain declaratory and injunctive relief, which would prevent the OCC from processing new applications under the same terms while the court weighs the rule. If the court sides with the OCC, the national trust bank would become a firmer federal route for crypto custody and stablecoin infrastructure.