ICBA Sues OCC Over Unauthorized Trust Charters for Crypto Companies
US banking group sues OCC over unauthorized trust charters for crypto companies.
The Independent Community Bankers of America (ICBA) filed a lawsuit against the Office of the Comptroller of the Currency (OCC) on Friday, accusing it of overstepping its authority in granting national trust bank charters to cryptocurrency firms. ICBA claims that OCC is implementing 'broad new powers not authorized by the National Bank Act', allowing these companies to enter the US banking system without being subject to community banks' level of regulatory constraints, putting small banks at a 'severe competitive disadvantage'.
ICBA President and CEO Rebeca Romero Rainey stated that Congress established national trust charters for cryptocurrency firms as a means to allow them to seek federal bank charter recognition, but these companies do not bear the same responsibilities in terms of capital, liquidity, regulation, or FDIC insurance requirements.