Community banks sue OCC over crypto trust charters

On October 2, 2026, the Independent Community Bankers of America filed a federal lawsuit against the Office of the Comptroller of the Currency. The lawsuit challenges a March 2, 2026 OCC rule that allows cryptocurrency firms to obtain national trust bank charters. Traditional bankers argue the OCC exceeded its authority under the National Bank Act, creating a regulatory side door that exempts crypto firms from FDIC insurance and Community Reinvestment Act standards, placing community banks at a severe competitive disadvantage.

Lawsuit challenging crypto trust charters

• ▪The Independent Community Bankers of America lawsuit challenges the Office of the Comptroller of the Currency's granting of national trust bank charters to cryptocurrency and digital asset firms
• ▪The Independent Community Bankers of America filed a lawsuit against the Office of the Comptroller of the Currency in the U.S. District Court for the District of Columbia on October 2, 2026

Concerns over regulatory double standards

• ▪The Independent Community Bankers of America contends that the Office of the Comptroller of the Currency's charter framework places traditional community banks at a severe competitive disadvantage
• ▪The Independent Community Bankers of America argues that crypto firms receiving national trust charters are exempt from traditional banking obligations, including Community Reinvestment Act compliance and Federal Deposit Insurance Corporation insurance
• ▪The Independent Community Bankers of America objects to letting companies engaged in high-risk digital asset activities operate under lighter regulatory standards than those imposed on conventional banking institutions

Bank Policy Institute stance

• ▪The Bank Policy Institute supports bringing innovative products into the banking ecosystem, provided that the entities engaging in those activities are subject to the same rules and responsibilities as other chartered institutions
• ▪Paige Pidano Paridon of the Bank Policy Institute argued that firms should only receive trust charters if they engage exclusively in trust activities

OCC trust charters

• ▪The Office of the Comptroller of the Currency has granted conditional approvals to cryptocurrency firms for national trust bank charters
• ▪The Office of the Comptroller of the Currency's March 2, 2026 rule created a path to national trust bank charters for non-fiduciary custody and safekeeping arrangements, and entities whose business is not strictly fiduciary in nature

Crypto firms seeking trust charters

• ▪The Independent Community Bankers of America has opposed a series of national trust charter applications from crypto firms dating back to at least 2025, including applications from Coinbase National Trust and Ripple
• ▪Crypto-focused firms pursuing or receiving national trust charters from the Office of the Comptroller of the Currency include Protego, Erebor, Coinbase, Circle, Crypto.com, and World Liberty Financial

Debatable claims

• ▪National trust charters should be restricted to firms performing traditional fiduciary activities
• ▪The OCC's crypto trust framework poses unacceptable risks to the financial system
• ▪The OCC's crypto trust charters create an unfair competitive disadvantage for traditional banks
• ▪The OCC exceeded its legal authority by granting national trust charters to crypto firms