Community Bankers Challenge OCC's Crypto Trust Charter Authority

The Independent Community Bankers of America is challenging the Office of the Comptroller of the Currency’s authority to grant national trust bank charters to crypto firms, alleging the framework lets them gain banking status without requirements applied to insured banks.

The trade group filed suit Oct. 2 in the U.S. District Court for the District of Columbia. It argues the OCC exceeded the authority Congress granted under the National Bank Act.

The complaint says crypto firms holding trust charters do not face the same capital and liquidity standards, consolidated supervision or Federal Deposit Insurance Corp. coverage as insured banks.