A US community banking group has sued the Office of the Comptroller of the Currency, arguing that the regulator went beyond the authority granted by Congress by allowing cryptocurrency companies to obtain limited national trust bank charters. The lawsuit was filed Friday in the US District Court for the District of Columbia by the Independent Community Bankers of America. The group says the OCC has given crypto firms the credibility associated with a federal bank charter without requiring the safeguards and obligations that normally apply to insured depository institutions. ICBA President and CEO Rebeca Romero Rainey said Congress did not create the national trust charter as a way for crypto firms to enter the banking system without Community Reinvestment Act duties, consolidated supervision, capital and liquidity standards, and FDIC insurance. The OCC had not responded to a request for comment by publication. Cointelegraph previously reported in August that, under President Donald Trump and OCC head Jonathan Gould, the agency had approved or conditionally approved several trust charter applications from crypto companies seeking to expand services in the US. Those charters do not permit deposit-taking or lending.
A US community banking group has sued the Office of the Comptroller of the Currency, saying the agency exceeded the authority granted by Congress when it allowed cryptocurrency companies to obtain limited national trust bank charters.
The Independent Community Bankers of America, or ICBA, filed the lawsuit on Friday in the US District Court for the District of Columbia.
The group argues that the OCC has given crypto firms the credibility of a US bank charter without enough safeguards and without requiring compliance with the standards normally applied to banks.
In a statement, ICBA President and CEO Rebeca Romero Rainey said: "The OCC’s decision to allow companies to obtain national trust bank charters to conduct substantial non-fiduciary activities exceeds the authority Congress granted the agency."
Rainey added: "Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter without the Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to insured depository institutions."
She said the ICBA is asking the court to return the OCC to its statutory limits.
The OCC was asked to comment on the lawsuit but had not responded by the time of publication.
Cointelegraph reported in August that under President Donald Trump and OCC head Jonathan Gould, the agency had approved or conditionally approved multiple applications from crypto companies seeking trust charters as they looked to expand services in the United States.
Those trust bank charters do not allow companies to accept deposits or make loans, which sets them apart from conventional commercial banks.
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