A community banks group has filed a lawsuit against a United States bank regulator, alleging that the agency's decision to allow cryptocurrency companies to obtain limited national trust bank charters exceeds the authority granted by Congress.
The Independent Community Bankers of America (ICBA) filed the suit in the US District Court for the District of Columbia. The group claims that the Office of the Comptroller of the Currency (OCC) has granted crypto firms the credibility of a US bank charter without adequate safeguards or adherence to standard banking requirements.
ICBA president and CEO Rebeca Romero Rainey stated in a release that the OCC's decision allows companies to conduct substantial non-fiduciary activities beyond the authority granted by Congress. Rainey stated that the national trust charter was not intended as a backdoor into the banking system for crypto firms seeking federal credibility without standard obligations such as Community Reinvestment Act compliance, consolidated supervision, capital and liquidity standards, and FDIC insurance.
The lawsuit asks the court to return the OCC to its statutory limits. The OCC was approached for comment regarding the lawsuit but had not responded prior to publication.
Under President Donald Trump and OCC head Jonathan Gould, the agency has approved or conditionally approved multiple applications from cryptocurrency companies seeking trust charters to broaden their US services. However, these trust bank charters do not permit companies to accept deposits or issue loans, setting them apart from conventional commercial banks.
