ICBA Sues OCC to Overturn Rule Allowing Crypto Firms to Operate Under National Trust Bank Charter

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) to overturn a rule that allows fintech and crypto firms to operate under a national trust bank charter.

The OCC finalized its national trust bank rule in February, effective April 1, which replaced the phrase 'fiduciary activities' with the broader wording 'the operations of a trust company and activities related thereto.'

The ICBA argues that the OCC has exceeded its authority by widening limited-purpose trust charters for fintech and crypto firms, and that the rule allows non-depository, non-fiduciary crypto businesses to operate under a lighter framework than insured banks face.

The OCC has approved or conditionally approved 21 trust banks, 13 of which are tied to crypto, and has received 40 de novo charter applications over about 18 months, with 23 involving digital assets.