ICBA sues OCC over crypto trust bank charters — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- ICBA filed suit Friday in the US District Court for the District of Columbia against the OCC, alleging the agency exceeded the authority Congress granted it.
- OCC under President Trump and OCC head Jonathan Gould has approved or conditionally approved multiple applications from crypto firms seeking national trust bank charters, per August Cointelegraph reporting cited in the article.
- ICBA president and CEO Rebeca Romero Rainey said 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.'
- The lawsuit argues crypto firms gain federal bank-charter credibility while bypassing Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to insured depositories.
- ICBA is asking the court to return the OCC to its statutory limits, and the OCC had not responded to a request for comment by publication.
- Unlike conventional commercial banks, holders of the disputed trust charters cannot accept deposits or make loans, per Cointelegraph's August reporting.
Why it matters: Community banks contend crypto firms are receiving the credibility of a federal bank charter while avoiding the CRA obligations, capital and liquidity standards, and FDIC insurance that apply to insured depositories — creating an uneven regulatory playing field. A court ruling for ICBA could force the OCC to roll back recently approved crypto trust charters and narrow the agency's authority over non-depository national charters.
Ask SkimNews
