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

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, accusing the Office of the Comptroller of the Currency (OCC) of relaxing national bank charter rules, thereby allowing cryptocurrency companies to enter the banking system without assuming the same regulatory obligations as traditional banks. The ICBA is seeking a court order to vacate the OCC's National Bank Charter Rules issued in March 2026 and related prior interpretive documents, and to invalidate the conditional national trust bank charter granted to digital asset custody firm Protego Holdings. The complaint states that the current U.S. administration has approved or conditionally approved 21 national trust banks, with at least 13 being cryptocurrency enterprises. ICBA argues that these institutions do not need to comply with certain regulatory requirements applicable to traditional banks, such as capital, liquidity, and deposit insurance mandates, yet are permitted to operate nationwide using a federal charter, creating unfair competition. The ICBA also warned that some crypto trust banks lack adequate risk management and independent oversight mechanisms, potentially posing risks to the financial system. The OCC has currently declined to comment on the lawsuit.