- The Independent Community Bankers of America sued the OCC in D.C. federal court, challenging its authority to grant national trust bank charters to crypto firms.
- The suit targets a March 2026 rule and Interpretive Letter No. 1176, and seeks to void Protego‘s conditional charter.
- CEO Rebeca Romero Rainey argues crypto firms gain federal bank credibility without FDIC insurance, capital standards, or Community Reinvestment Act obligations.
- The fight intensifies as Circle, Ripple, Kraken‘s parent, and Trump-tied World Liberty pursue OCC charters.
The Independent Community Bankers of America filed suit Friday in the U.S. District Court for the District of Columbia against the Office of the Comptroller of the Currency, challenging its authority to charter national trust banks for crypto firms. The group’s complaint, brought under the Administrative Procedure Act, centers on a March 2, 2026 final rule tied to Interpretive Letter No. 1176 and asks the court to declare both unlawful.
ICBA President and CEO Rebeca Romero Rainey said the OCC has stretched the charter into “a side door into the banking system for crypto firms.” “Letting companies obtain such charters to conduct substantial non-fiduciary activities exceeds the authority Congress granted the agency,” she said.
The suit argues these firms gain the credibility of a federal bank charter without the Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance that bind insured depository institutions. Digital assets held at a crypto firm under a trust charter don’t carry federal consumer protections, the group warned.
The complaint singles out Protego Holdings, whose conditional charter ICBA wants vacated over governance and risk-control shortcomings. The lawsuit escalates a fight as crypto firms flock to the OCC, including Circle, Ripple, Paxos, Fidelity, BitGo, Kraken‘s parent Payward, Jack Dorsey‘s Block, and Trump-tied World Liberty Financial.
Sen. Elizabeth Warren has separately called the approvals illegal, a charge the industry has disputed. The suit lands as the OCC races to finalize GENIUS Act stablecoin rules by November, adding another front to the clash over crypto’s place in the federal banking system.
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