ICBA Takes OCC to Court Over Crypto Firm Bank Charters

The Independent Community Bankers of America (ICBA) has filed a federal lawsuit against the Office of the Comptroller of the Currency (OCC), arguing that the regulator has been illegally handing crypto firms a 'side door' into the banking system through national trust-charters.

The ICBA, which represents community banks across the US, claims that the OCC's decision to allow companies to obtain national trust bank charters for non-fiduciary activities exceeds the authority granted by Congress. The lawsuit targets a specific rule tied to Interpretive Letter No. 1176, asking the court to find both the rule and letter unlawful.

The ICBA alleges that national trust banks were originally meant for fiduciary activities like trust management, not as a backdoor route into the banking system for firms seeking credibility without regulations. The lawsuit points out that these charters preempt state-level protections, including consumer protection laws.

The complaint specifically names Coinbase, World Liberty Financial, and Protego Holdings Corp., which received conditional approval in February 2026. ICBA is asking the court to vacate Protego's charter approval due to its troubled history and flawed risk structure.