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Community banks sue OCC to block crypto trust charters
The Independent Community Bankers of America targets a March 2, 2026 OCC final rule tied to Interpretive Letter No. 1176.
America's community banks have sued the Office of the Comptroller of the Currency, arguing the regulator is allowing cryptocurrency companies to access a path into the banking system through national trust bank charters.
Decrypt reports the Independent Community Bankers of America filed the case in U.S. District Court for the District of Columbia under the Administrative Procedure Act, challenging the OCC's authority to charter national trust banks for crypto firms and asking the court to declare the agency's actions unlawful.
The group said an OCC March 2, 2026 final rule, linked to Interpretive Letter No. 1176, effectively lets crypto firms perform substantial non-fiduciary activities beyond Congress's limits, while receiving the credibility of a federal charter without requirements tied to insured depository institutions.
The ICBA also argued the approach could leave a consumer-protection gap, citing differences from safeguards such as Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance.