A trade group representing U.S. community banks has sued the Office of the Comptroller of the Currency (OCC), arguing that the regulator exceeded its authority by allowing cryptocurrency firms obtain national trust bank charters.

The Independent Community Bankers of America (ICBA), which represents banks typically holding less than $10 billion in assets, filed the lawsuit in the U.S. District Court for the District of Columbia. It is seeking to overturn an OCC rule and related guidance that facilitate applications for national trust charters by crypto firms. The filing places the legality of the OCC's crypto chartering framework directly before a federal court.

Regulatory Requirements at the Center of the Case

According to the ICBA, the charters give crypto companies the credibility associated with a federal bank charter without subjecting them to the same regulatory requirements that apply to traditional banks. The group cited capital and liquidity standards, consolidated supervision, Federal Deposit Insurance Corp. insurance, and Community Reinvestment Act obligations.

“American consumers reasonably expect a federally chartered bank to carry federal protections,” ICBA President and CEO Rebeca Romero Rainey said in a statement.

Earlier Legal Threat From Major U.S. Banks

The lawsuit comes seven months after the Bank Policy Institute (BPI), a lobbying group representing some of the largest U.S. banks, said it was considering legal action against the OCC over the regulator's move to grant national trust bank charters to crypto and fintech firms. The BPI similarly argued that the OCC has reinterpreted federal licensing rules in a way that could allow crypto companies to enter the U.S. banking system without the same level of oversight applied to traditional banks.

What National Trust Charters Permit

National trust bank charters allow companies to hold and manage assets for customers and facilitate payment settlement, but do not permit them to accept traditional cash deposits or make loans. Full national bank charters, by comparison, allow deposit-taking and lending — the activities tied to the capital, liquidity, and deposit insurance requirements the ICBA argues crypto charter holders avoid.

The OCC, an independent bureau of the U.S. Department of the Treasury that charters, regulates, and supervises national banks, said in February 2026 that its rule clarified the longstanding authority of national banks limited to trust-company operations to conduct certain non-fiduciary activities. The rule took effect on April 1, 2026, and the regulator has since approved or conditionally approved several applications from crypto and fintech firms.

OCC Comptroller Jonathan Gould said in August 2026 that the agency had received 40 applications for new bank charters since President Donald Trump took office, with 23 business plans involving some form of digital-asset activity — figures showing that digital-asset firms account for more than half of the charter applications the agency has received in that period.

Uneven Playing Field Argument

The ICBA argues that expanding national trust charters to crypto firms creates an uneven regulatory environment between traditional community banks and companies offering banking-related services without equivalent safeguards. A ruling in the ICBA's favor would strike down the rule and guidance that have facilitated the OCC's recent approvals of crypto and fintech charter applications.

The OCC declined to comment on the lawsuit.

Source: BitcoinKE