Community bankers sue OCC over crypto trust bank charters

The Independent Community Bankers of America filed a lawsuit against the Office of the Comptroller of the Currency on October 2 in federal court in Washington, BeInCrypto, CryptoSlate, and Cointelegraph reported. As FTMQ News reported earlier, the lawsuit seeks to overturn a federal rule that allows cryptocurrency companies to obtain national trust bank charters. [1][2][3][10]

According to BeInCrypto and Cointelegraph, the trade group claimed in its complaint that the federal regulator lacks the legal authority from Congress to grant charters to non-fiduciary cryptocurrency firms. Cointelegraph added that the banking group argues the regulator gives crypto companies the credibility of a national bank charter without enforcing proper safeguards or normal banking requirements. [1][3]

CryptoSlate reported that the lawsuit follows the regulator approving charters for Agora National Trust Bank, Catena Trust Bank, and Bastion Platforms. Community bankers are asking a federal judge to vacate the agency national trust bank rule and Interpretive Letter 1176, which is involved in a broader effort to secure 21 trust charters, including 13 for cryptocurrency firms. [2][10]