Why these community banks are suing the OCC over crypto trust charters

00:00 Speaker A

Yay, we're getting sued again.

00:02 Speaker A

Community Banks sue US regulator over crypto firm charter. So, to be clear, we as the crypto industry are not getting sued. It's just uh people suing the United States government because they talk about or even mention crypto. This is

00:15 Speaker A

a furthering of the clarity act fight that we saw before and the community banks could not be more confused right now. Right? Uh, watch what they do, not what they say. They're all over the map, but the independent community bankers of America

00:29 Speaker A

are suing the OCC, arguing that the OCC exceeded its authority by granting national Trust Bank charters to crypto companies that are conducting custody, trading, lending and issuance.

00:40 Speaker A

So, their argument is that these trust banks, uh, generally do not accept conventional deposits, so they do not operate with FDIC insurance. But I ask you, as the

00:52 Speaker A

as the crypto companies quickly pointed out, if they're not accepting deposits, why why do they need insurance on deposits?

00:59 Speaker A

so dumb.

01:00 Speaker A

So dumb.

01:01 Speaker A

So basically, what the community banks here are arguing is that there's some preferential treatment for crypto companies who are getting these very skinny limited trust bank, even though they're not offering full banking services. But the reality is that the community banks have shown