Community Bankers Sue OCC Over National Trust Charters for Crypto Firms

The Independent Community Bankers of America filed suit in federal court on Friday against the Office of the Comptroller of the Currency. The group says the agency has stretched its authority by granting national trust bank status to crypto companies, claiming the National Bank Act gives it no such sweeping power. According to the complaint, these firms enter the banking system without facing the oversight that community banks must meet, which leaves smaller lenders at a severe competitive disadvantage. An OCC spokesperson said the agency does not comment on litigation.

Why Community Banks Object to the Trust Charter Route

ICBA president Rebeca Romero Rainey argued Congress never designed the trust charter as a side door for crypto firms chasing the credibility of a federal charter. She noted they avoid the same capital, liquidity, supervision and FDIC insurance duties. The group also helped block the CLARITY Act last month, objecting that its stablecoin rules did not shield bank deposits from direct competition.

Democratic Senator Elizabeth Warren, who accused the agency of permitting presidential corruption said on X;

Which Crypto Firms Hold OCC Charters

The OCC has approved a steady run of charters, including crypto-focused banks Protego and Erebor, plus Coinbase, Circle and Crypto.com. World Liberty Financial, partly owned by President Trump’s family, also won approval, drawing criticism from Senator Elizabeth Warren. Last month OpenReserve Bank received a full national bank charter. The Bank Policy Institute said firms should only hold trust charters if they stick to trust activities.