Banking Group Sues U.S. Regulator Over Crypto Trust Charters

crypto trust charters — A major U.S. banking trade group has sued a federal regulator, alleging it overstepped its legal authority by granting national trust bank charters to cryptocurrency firms.

The Independent Community Bankers of America filed the lawsuit against the Office of the Comptroller of the Currency in federal court on Friday. The group argues that the OCC is creating a competitive disadvantage by allowing crypto firms to operate as trust banks without being held to the same standards as traditional banks.

The lawsuit contends that the regulator is exercising “sweeping new powers” not authorized by the National Bank Act. The OCC has the authority to grant national trust bank charters and has used it to bring several crypto companies into the federal banking system.

This legal challenge represents a significant pushback from the traditional banking sector against the integration of digital asset firms into the regulated financial infrastructure. The outcome could influence the future regulatory path for crypto businesses seeking federal banking status.