Independent Community Bankers of America sues the OCC over rules allowing crypto firms to obtain national trust bank charters, challenging recent approvals for Circle and Ripple.
Regulation & Gov ·
The Independent Community Bankers of America has brought legal action against the Office of the Comptroller of the Currency, seeking to overturn rules and approvals that have enabled digital asset companies to establish federally chartered trust banks. The challenge targets a March 2026 OCC rule permitting national trust-limited banks to engage in non-fiduciary operations, as well as a related interpretive letter. Recent approvals for Circle, Ripple, BitGo, and Paxos to operate as federally supervised trust entities have intensified the dispute.
At the core of the ICBA's complaint is the assertion that crypto firms are gaining access to federal bank credentials and regulatory standing while sidestepping obligations that traditional insured depository institutions must meet. According to ICBA leadership, the trust charter pathway allows these companies to avoid requirements including FDIC insurance coverage, Community Reinvestment Act compliance, and standard capital and liquidity rules. The OCC has stated the rule neither expanded nor contracted its existing authority, but the ICBA contends Congress never intended the structure to function this way.
The lawsuit, filed in US District Court for the District of Columbia, seeks a declaration that both the final rule and the interpretive letter are unlawful. Whether courts will find merit in the challenge to the OCC's regulatory interpretation, or how additional pending applications from digital asset firms may be affected, remains unresolved.