The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), claiming the regulator overstepped its authority by allowing cryptocurrency companies to obtain national trust bank charters. The ICBA, which represents community banks typically holding less than $10 billion in assets, initiated the lawsuit in the U.S. District Court for the District of Columbia. They seek to overturn recent OCC rules designed to simplify the application process for crypto firms seeking national trust charters.
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The ICBA asserts that these charters provide cryptocurrency companies with the aura of legitimacy associated with federal bank charters but do not impose essential regulatory standards that traditional banks must adhere to, such as capital and liquidity requirements, consolidated supervision, Federal Deposit Insurance Corporation (FDIC) insurance, and obligations under the Community Reinvestment Act.
Rebeca Romero Rainey, ICBA President and CEO, stated that American consumers expect federally chartered banks to offer federal protections.
This legal action occurs seven months after the Bank Policy Institute (BPI), representing some of the largest U.S. banks, announced it was considering similar action against the OCC regarding the granting of national trust bank charters to crypto and fintech firms. The BPI argues that the OCC's reinterpretation of federal licensing rules could enable crypto companies to enter the U.S. banking system without the stringent oversight required of traditional banks.
National trust bank charters permit companies to manage assets for customers and facilitate payment settlement but do not allow them to accept traditional cash deposits or extend loans. In February 2026, the OCC clarified its rule on the authority of national banks limited to trust-company operations, allowing certain non-fiduciary activities. This rule took effect on April 1, 2026, and since then, the OCC has conditionally approved several applications from crypto and fintech firms.
Jonathan Gould, the OCC Comptroller, stated in August 2026 that the agency received 40 applications for new bank charters since President Donald Trump’s tenure began, with 23 related to digital asset activities. The ICBA contends that the expansion of national trust charters to crypto firms creates an uneven regulatory landscape, placing traditional community banks at a disadvantage. The OCC has declined to comment on the ongoing lawsuit.