The Independent Community Bankers of America (ICBA) filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in the US District Court for the District of Columbia on Friday. The group alleges that the regulator exceeded its authority granted by Congress by issuing limited national trust bank charters to cryptocurrency firms.
According to the ICBA, these charters grant crypto companies the credibility of a US bank status without requiring them to adhere to standard banking compliance measures. The association argues that these firms avoid obligations such as the Community Reinvestment Act, consolidated supervision, capital and liquidity standards, and FDIC insurance requirements.
ICBA president and CEO Rebeca Romero Rainey stated that the organization is seeking a court order to force the OCC to operate within its statutory limits. The lawsuit claims that the agency is providing a side door into the banking system for digital asset companies that do not meet the criteria for insured depository institutions.
Reports from August indicate that the OCC, under the leadership of Jonathan Gould, has approved or conditionally approved several applications from crypto firms for trust charters. These charters allow companies to expand their services in the US, although they do not grant the authority to accept deposits or issue loans like conventional banks.
