ICBA sues OCC over crypto firm banking charters

The Independent Community Bankers of America (ICBA) has filed a federal lawsuit against the Office of the Comptroller of the Currency (OCC) in the U.S. District Court for the District of Columbia. The ICBA alleges that the regulator overstepped its statutory authority under the National Bank Act by granting national trust bank charters to cryptocurrency firms.

The lawsuit specifically challenges the OCC’s Interpretive Letter 1176 and a recent rule, arguing they allow digital asset companies to access the federal banking system through a “side door.” The ICBA contends that these firms gain the prestige of a federal license without being subject to the same rigorous standards as traditional banks, such as capital and liquidity requirements, the Community Reinvestment Act, or FDIC deposit insurance.

In response, the Crypto Council for Innovation (CCI) has defended the OCC’s actions, stating that the use of national trust charters is a legitimate form of financial innovation. The CCI argues that the litigation is an attempt by established banking interests to stifle competition. The legal battle follows previous scrutiny from lawmakers, including Senator Elizabeth Warren, regarding the regulatory oversight of crypto-related banking charters.