ICBA Sues to Overturn OCC Trust-Bank Rule Allowing Crypto Firms to Get National Bank Charters

The Independent Community Bankers of America has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in federal court to overturn its trust-bank rule, which has been used by crypto firms to obtain national bank charters.

The OCC finalized its national trust bank rule in February, effective April 1, and replaced the phrase 'fiduciary activities' with the statute's broader wording. This change 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, including Agora National Trust Bank, Catena Trust Bank, and Bastion Platforms, with 13 of them tied to crypto. The OCC says the language leaves its chartering authority intact and that national trust banks have long performed some non-fiduciary work.

The ICBA's complaint argues that the OCC has exceeded its authority by widening limited-purpose trust charters for fintech and crypto firms, and seeks vacatur plus declaratory and injunctive relief. The court will now review the scope of authority behind every charter that relies on the rule.