American Community Bankers Association sues OCC, alleging it exceeded statutory authority by issuing national trust bank charters to crypto companies.

On October 6, according to Crowdfund Insider, the Independent Community Bankers of America (ICBA) filed a lawsuit on October 2 in the U.S. District Court for the District of Columbia, alleging that the Office of the Comptroller of the Currency (OCC) relaxed national trust bank charter rules, allowing cryptocurrency companies to enter the banking system without bearing the same regulatory obligations as traditional banks.

The ICBA is requesting that the court revoke the OCC's National Bank Charter Rules issued in March 2026, along with prior related interpretive documents, and revoke the conditional national trust bank charter granted to crypto asset custodian Protego Holdings.

The complaint states that the current U.S. administration has approved or conditionally approved 21 national trust banks, at least 13 of which are cryptocurrency enterprises. The ICBA contends that these entities can operate nationwide under federal charters without adhering to certain regulatory requirements imposed on traditional banks, such as those pertaining to capital, liquidity, and deposit insurance, thereby creating unfair competition.

The ICBA also warned that some crypto trust banks lack adequate risk management and independent oversight mechanisms, which could pose potential risks to the financial system. The OCC has declined to comment on the lawsuit to date.