US Community Banks Sue OCC, Saying It Lacks Authority to Grant Trust Bank Charters to Digital-Asset Firms

The U.S. community banking industry has sued the Office of the Comptroller of the Currency, arguing the agency lacks authority to grant federal trust bank charters to digital-asset companies.

The Independent Community Bankers of America, a trade group representing U.S. community banks, filed the lawsuit against the OCC in federal court in Washington, D.C., Coin Bureau reported on October 3. The group argues the OCC exceeded the authority granted by Congress by issuing National Trust Bank charters to nontraditional financial companies, including digital-asset firms.

"Congress did not create the national trust charter to provide a workaround for digital-asset companies," Rebecca Romero Rainey, ICBA's president and chief executive officer, said.

The OCC has recently approved a series of trust bank entries by digital-asset firms. Foris DAX, the operator of Crypto.com, Coinbase and World Liberty Trust Company have received National Trust Bank charters from the agency.

ICBA argues the approvals could undermine regulatory parity between traditional banks and digital-asset companies. It says digital-asset firms with trust bank charters can operate as federally chartered financial institutions without being subject to some of the rules that apply to conventional banks.

The OCC did not separately comment on the lawsuit.