Community Bankers Sue US Banking Regulator Over 'Side Door' Crypto Charters

Key Takeaways

• ICBA sues the OCC over issuing non-fiduciary trust bank charters to 13 digital asset companies.
• The suit threatens conditional federal charters held by crypto platforms like Coinbase, Circle, and Ripple.
• A court ruling against the OCC could force crypto firms to restructure or seek state charters in 2026.

Allegations of Statutory Overreach

The Independent Community Bankers of America (ICBA) filed a federal lawsuit against the Office of the Comptroller of the Currency (OCC), challenging the regulator’s authority to grant national trust bank charters to cryptocurrency firms.

The complaint, filed in the U.S. District Court for the District of Columbia, targets an OCC rule and accompanying legal interpretation that expanded national trust charters to cover non-fiduciary digital asset activities. The lawsuit was filed months after U.S. Sen. Elizabeth Warren of Massachusetts, a prominent crypto critic, accused the OCC of illegally granting banking charters to crypto companies.

In the complaint, the ICBA argues that the OCC exceeded the statutory authority Congress granted under the National Bank Act by allowing crypto companies to secure federal trust charters without performing traditional fiduciary duties.