US Community Banks Sue OCC, Claiming Crypto Trust Bank Charters Overstep Authority

The US community banking industry has launched a legal challenge against the Office of the Comptroller of the Currency (OCC) over its approval of federal trust bank charters for digital asset firms. The core argument is that the agency's actions exceed the authority granted by Congress.

The Independent Community Bankers of America (ICBA) filed a lawsuit against the OCC in federal court in Washington, D.C., on the 2nd (local time). The ICBA argues that the OCC's practice of granting National Trust Bank charters to non-traditional financial companies, including digital asset firms, falls outside the scope of authority defined under the National Bank Act.

"Congress did not create the national trust charter to provide a workaround for digital asset companies," said Rebeca Romero Rainey, ICBA President and CEO. The ICBA further contends that the OCC has effectively altered its own role and authority without separate congressional approval.

The OCC has recently approved a series of trust bank charters for digital asset firms. Foris DAX, the operator of Crypto.com, Coinbase, and World Liberty Trust Company—which has reported ties to former President Donald Trump's family—have all received National Trust Bank charters from the OCC.