REGULATION | Community Banks Sue U.S. Regulator Over Crypto Trust Bank Charters

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 to 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.

REGULATION | The Office of the Comptroller of the Currency (OCC) Clears National Banks to Act as Intermediaries in Crypto Transactions

The ICBA said the charters give crypto companies the credibility associated with a federal bank charter without subjecting them to the same regulatory requirements as traditional banks including

• 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.