Community Bankers Sue OCC Over Crypto Trust Charters

The Independent Community Bankers of America filed a lawsuit Friday in the U.S. District Court for the District of Columbia against the Office of the Comptroller of the Currency and its head, Jonathan Gould. The legal action seeks to vacate a rule and accompanying guidance that permit cryptocurrency companies to obtain national trust bank charters for issuing stablecoins and custodying digital assets.

The trade organization argues that the OCC overstepped its statutory authority by creating a side door into the banking system. According to the lawsuit, this allows crypto firms to operate without the costly regulatory oversight and safeguards required of traditional community banks. While these national trust charters do not allow firms to make loans or take deposits, the group claims the arrangement creates a severe competitive disadvantage for smaller banks.

The OCC, operating under the Trump administration, has granted several of these charters to promote financial innovation. The lawsuit asks the court to return the regulator to its statutory limits.