ICBA Sues OCC to Block Crypto Firms from Banking Charters
The Independent Community Bankers of America (ICBA) has taken legal action against the Office of the Comptroller of the Currency (OCC), seeking to block crypto firms from obtaining national trust charters. The ICBA argues that Congress never authorized the OCC to grant such charters to companies involved in crypto activities. The lawsuit specifically targets a rule issued on March 2, 2026, and the OCC's Interpretive Letter No. 1176, which the group claims oversteps regulatory authority.
ICBA President and CEO Rebeca Romero Rainey stated, 'Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter.' The lawsuit also seeks to revoke a conditional charter granted to Protego Holdings, citing concerns over the firm's governance and risk controls. The ICBA represents small US banks with assets under $10 billion and claims that the OCC's actions put them at a competitive disadvantage.
The OCC has approved several national trust charters for crypto and fintech firms, including Protego, Erebor, Coinbase, Circle, and Crypto.com. Other firms like Ripple, Paxos, Fidelity, BitGo, and Kraken's parent company Payward have also applied for such charters. The ICBA contends that these firms benefit from federal charter advantages without the same regulatory obligations as traditional banks, while also bypassing state consumer protection laws.
Industry reactions have been mixed. Senator Elizabeth Warren previously criticized the OCC's approvals as illegal, particularly the conditional approval given to World Liberty Financial. Meanwhile, the Bank Policy Institute (BPI) expressed openness to new products but emphasized the need for equal regulations. BPI's executive vice president, Paige Pidano Paridon, stated that trust charters should only be granted to firms engaged solely in trust activities, not traditional banking.