A trade organization representing United States community banks has filed a lawsuit against the Office of the Comptroller of the Currency (OCC). The legal action challenges the regulator's authority to grant national trust bank charters to cryptocurrency companies.
The Independent Community Bankers of America (ICBA) initiated the case in the District of Columbia. According to the lawsuit, the regulator overstepped its jurisdiction by providing these charters, which gives crypto companies the credibility of a bank charter without forcing them to comply with all regular banking requirements.
Under national trust charters, entities are permitted to process transactions and manage customer funds, though they cannot issue loans or take cash deposits. ICBA President and CEO Rebeca Romero Rainey stated that digital assets held by crypto firms under these charters lack the federal protections that American consumers typically expect from a federally chartered bank.
Previous Pushback and Regulatory Stance
The conflict follows months of growing opposition. In May, the ICBA opposed the charter application submitted by Payward, the parent company of Kraken. Senator Elizabeth Warren also raised concerns in a May letter, noting that the OCC had granted at least nine national trust charters to crypto firms since December 2025 and questioning whether their activities fit within traditional trust company bounds.
Comptroller Jonathan Gould previously stated that the OCC received 40 applications for new bank charters over an 18-month period, with 23 of those tied to digital assets. The OCC maintains that its final chartering rules, which took effect on April 1, neither expand nor contract the agency's chartering authority, but rather clarify that trust-limited national banks may perform non-traditional functions related to trust company activities.
Broader Financial Implications
The legal dispute carries potential weight for the wider financial and global markets. Research from the Bank for International Settlements indicates that stablecoin volume could surpass $300 billion by 2026, with the vast majority linked to the US dollar. Additionally, the Financial Stability Board has noted regulatory gaps across different jurisdictions that can lead to regulatory arbitrage, making the outcome of the OCC lawsuit a key factor in defining the reach of US trust company charters in the digital asset sector.
