The Independent Community Bankers of America (ICBA) filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in the U.S. District Court for the District of Columbia. The trade group challenges the OCC's authority to grant national trust bank charters to cryptocurrency companies, arguing this practice bypasses congressional limits.
The complaint, filed under the Administrative Procedure Act, specifically targets a final rule issued on March 2, 2026, and Interpretive Letter No. 1176. The ICBA claims these charters allow crypto firms to enter the banking system without meeting standard requirements such as FDIC insurance, capital standards, and consolidated supervision.
The lawsuit highlights concerns regarding consumer protection, noting that digital assets held under these trust charters lack federal safeguards. The ICBA argues that these entities operate under lighter regulations than traditional banks while preempting state consumer-protection laws.
The legal action specifically seeks to vacate the conditional charter granted to Protego Holdings, citing issues with the firm's risk management. Other companies that have applied for or received OCC clearance include Circle, Ripple, Paxos, Fidelity, BitGo, Payward, Block, and World Liberty Financial.
This litigation coincides with the OCC's efforts to finalize stablecoin rules under the GENIUS Act by November. Senator Elizabeth Warren has previously labeled these charter approvals as illegal, a position that remains a point of contention between regulators, lawmakers, and the industry.
