Banking Group Sues OCC Over Crypto Trust Charters

Community bankers challenge the OCC's crypto charter path

The Independent Community Bankers of America has sued the Office of the Comptroller of the Currency, the federal agency that issues national bank charters, over its decision to grant crypto firms trust bank status. The lawsuit was filed in federal court on Friday, Oct. 2, 2026.

ICBA argues the OCC is exceeding its legal authority under the National Bank Act by allowing digital asset companies into the banking system without the same regulatory obligations that community banks face.

What the lawsuit claims

• The OCC is using the national trust charter as an unofficial entry point for crypto firms into the U.S. banking system.
• Crypto trust banks are not subject to the same capital, liquidity, supervisory, or FDIC insurance requirements as traditional community banks.
• This creates a competitive disadvantage for smaller, traditional banks.
• ICBA President and CEO Rebeca Romero Rainey stated that Congress did not intend the national trust charter to serve as a backdoor for crypto companies seeking the credibility of a federal bank charter.

The OCC's response

An OCC spokesperson told CoinDesk the agency does not comment on litigation.

Broader context

ICBA is one of the largest banking advocacy groups in the U.S., representing smaller institutions. The group previously opposed the Digital Asset Market Clarity Act, which failed to advance in the Senate partly due to objections that its stablecoin provisions threatened community banks' deposit businesses.

The push for national trust charters by crypto firms has been credited by regulators with sparking a resurgence in new bank applications after a long drought. Some of the entities seeking charters, such as Protego and Erebor, have been described as crypto-focused banks. Erebor received conditional federal bank charter approval from the OCC in October 2025.

Trust charters differ from full national bank charters in scope. Companies holding them do not typically offer cash deposit accounts or operate under the same business model as community banks, which is why FDIC insurance requirements do not apply in the same way.

Why this matters for the crypto industry

A trust charter from the OCC gives a crypto firm a degree of regulatory credibility and access to the U.S. banking and payments system. If the lawsuit succeeds, it could slow or block the path crypto companies are taking to enter regulated finance. For community banks, the outcome will determine whether they face new competitors operating under a lighter regulatory framework.

What happens next

The case will proceed through the federal court system. No timeline for a ruling was provided in the sources.

Sources

• CoinDesk
• ICBA Official Release
• ICBA v. OCC Complaint

Read also: Community Bankers Sue OCC Over Crypto Trust Bank Charters