U.S. banks sue OCC over crypto company charters
The Independent Community Bankers of America (ICBA) has sued the U.S. Office of the Comptroller of the Currency (OCC), challenging its authority to grant national trust bank charters to crypto companies. The organization argues that the mechanism gives crypto firms access to the banking system without the requirements imposed on traditional banks.
The lawsuit was filed in federal court in the District of Columbia. ICBA is seeking to invalidate the OCC's March 2, 2026 rule and Interpretive Letter No. 1176, which the regulator uses to define permissible activities for national trust banks.
The organization represents U.S. community banks and argues that the OCC has exceeded the authority granted to it by Congress. ICBA described the mechanism as a "side door into the banking system" for crypto companies.
Banks point to unequal requirements
ICBA CEO Rebeca Romero Rainey said a trust charter allows crypto companies to benefit from the credibility associated with being a federally chartered bank while facing fewer obligations. These include capital and liquidity requirements, consolidated supervision and compliance with the Community Reinvestment Act.
In addition, customer assets held by such institutions do not receive Federal Deposit Insurance Corporation (FDIC) protection provided for deposits at insured banks. ICBA also argues that a federal charter could limit the application of certain state consumer protection laws.
The lawsuit also specifically mentions Protego Holdings. The banking group is seeking to overturn the company's conditional charter, citing alleged deficiencies in corporate governance and risk controls.
The dispute is gaining significance as more crypto companies seek OCC charters. They include Circle, Ripple, Paxos, Fidelity, BitGo, Kraken parent Payward, Jack Dorsey's Block and Trump-linked World Liberty Financial.
Banks increasingly embrace stablecoins
The dispute over crypto companies' access to the banking system comes as traditional financial institutions themselves increasingly adopt digital assets. The OCC is also preparing stablecoin rules under the GENIUS Act, which the regulator expects to finalize by November.
One recent example is Lloyds Banking Group, which conducted its first USDC settlement pilot with Visa. Over seven days, the British banking group settled $750,000 in payment obligations with Visa, with funds arriving in less than an hour, including on weekends.
Earlier, we reported that Revolut is stepping up competition with traditional European banks as it expands globally. The fintech company's valuation has reached $115 billion.
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