Bank Group Sues U.S. Regulator Over Crypto Trust Charter Approvals

The Independent Community Bankers of America has sued the Office of the Comptroller of the Currency, arguing that the federal regulator exceeded its statutory authority by allowing crypto companies to obtain national trust bank charters. The lawsuit was filed Oct. 2 in the U.S. District Court for the District of Columbia.

ICBA argues that the OCC’s approach gives crypto firms access to the credibility of a federal bank charter without imposing the same requirements faced by traditional insured community banks. The trade group says the regulator’s March 2, 2026, final rule and related Interpretive Letter No. 1176 improperly expand the agency’s authority under the National Bank Act.

The group contends that the charter framework allows firms conducting substantial non-fiduciary activities to enter the banking system without requirements such as capital and liquidity standards, consolidated supervision, Community Reinvestment Act obligations and Federal Deposit Insurance Corp. insurance. ICBA says the difference could place community banks at a competitive disadvantage.

ICBA is one of the major U.S. organizations representing community banks, particularly smaller institutions. The group has previously opposed crypto-related banking proposals, including provisions of the Digital Asset Market Clarity Act, and is now challenging national trust charters as another route for digital-asset companies to expand into the U.S. banking and payments system.

ICBA President and CEO Rebeca Romero Rainey said Congress did not establish the national trust charter as an alternative route for crypto companies seeking federal banking status without the responsibilities associated with insured banks. The organization is asking the court to invalidate the OCC’s rule and guidance and return the agency to what it considers the limits of its statutory authority.

The OCC declined to comment on the litigation.

National trust bank charters are different from full-service bank charters. Crypto firms operating under the trust structure generally do not accept traditional deposits or make loans, meaning they do not operate in exactly the same way as conventional community banks. The dispute centers on whether companies performing substantial non-fiduciary crypto activities should qualify for the trust-bank framework.

The Bank Policy Institute said it supports bringing innovative products and services into the regulated banking system, provided companies performing the same activities are subject to the same rules and responsibilities as other chartered institutions. BPI also said firms seeking to conduct traditional banking activities should pursue full-service bank charters rather than trust charters.

The expansion of national trust charters has coincided with a broader increase in new banking entrants after years of limited charter activity. Crypto-focused firms such as Protego and Erebor have pursued the structure, while established digital-asset companies including Coinbase, Circle and Crypto.com have also sought or obtained trust-bank status.

World Liberty Financial, a crypto company partly owned by President Donald Trump and his family, is another recent example. Its charter approval has drawn criticism from Democratic Senator Elizabeth Warren, who argued that the arrangement could provide financial benefits to the president and his family.

The OCC also granted a full national bank charter last month to OpenReserve Bank, a blockchain-focused bank backed by crypto investors including Andreessen Horowitz, Jump Capital and Coinbase Ventures.

ICBA’s lawsuit adds another legal challenge to the OCC’s expanding role in granting federal banking charters to digital-asset companies and could determine how broadly the agency can use the national trust-bank framework for crypto businesses.

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