Bank group sues U.S. regulator OCC over crypto trust charter approvals, claiming legal authority overreach.
Regulation & Gov ·
A banking industry group has filed a lawsuit against the Office of the Comptroller of the Currency, contending that the federal regulator lacks legal authority to approve crypto trust charters. The OCC, an independent bureau within the Treasury Department established in 1863, has granted federal trust charters to crypto firms and has become a central gateway for digital asset companies seeking regulatory legitimacy within the U.S. banking system.
National trust bank charters authorize holders to act as fiduciaries managing custody and trust activities on a nationwide basis, though they do not permit deposit-taking. For crypto firms, these OCC-issued charters address a critical compliance barrier: institutional clients such as hedge funds and registered investment advisers often cannot place assets with custodians lacking federal regulatory recognition. The charter places holders under continuous OCC examination and capital requirements, offering institutional clients the credibility assurances that most state licenses do not provide.
The lawsuit's core allegation—that the OCC has overstepped its statutory authority—remains substantively unresolved. The specific legal grounds and the names of the plaintiffs are not disclosed in the available reporting. The outcome will likely shape whether the regulator can continue approving trust charters for crypto firms or must seek legislative clarification of its powers.