Traditional Banks Consider Legal Action Against OCC Over Crypto Charters

Several major U.S. banks, represented by the Bank Policy Institute (BPI), are contemplating legal action against the Office of the Comptroller of the Currency (OCC). This potential lawsuit stems from the OCC's recent decisions to grant national trust bank charters to cryptocurrency and fintech companies, which the banks argue could jeopardize consumer safety and the stability of the financial system. The OCC's actions, led by Jonathan Gould, a Donald Trump appointee, have been criticized for allowing these firms to operate with less regulatory oversight than traditional banks.

The GuardianTraditional Banks Consider Lawsuit Against OCC Over Crypto Charter Approvals

The OCC's reinterpretation of federal licensing rules has made it easier for crypto firms, including Ripple and Circle, to obtain banking charters. These approvals allow them to conduct operations across all 50 states, raising concerns among traditional banking institutions. The BPI, which includes leaders from major banks such as JP Morgan, Goldman Sachs, and Citigroup, has expressed that this regulatory shift blurs the lines defining what constitutes a bank, potentially increasing systemic risk.

The GuardianTraditional Banks Consider Lawsuit Against OCC Over Crypto Charter Approvals

In December 2025, the OCC granted conditional trust charters to Ripple and Circle, among others, prompting backlash from established banks. Critics argue that these firms can now operate without adhering to the same stringent capital requirements and consumer protections that traditional banks face. The BPI has warned that this could create significant vulnerabilities in the financial system.

Traditional Banks Consider Lawsuit Against OCC Over Crypto Charter Approvals

The BPI is not alone in its opposition. The Conference of State Bank Supervisors, representing regulators from all 50 states, has cautioned that granting charters to crypto companies undermines competition and consumer protection. Similarly, the Independent Community Bankers of America (ICBA) has urged the OCC to reconsider its licensing approach, stating that it could create loopholes in fundamental banking regulations.

The GuardianTraditional Banks Consider Lawsuit Against OCC Over Crypto Charter Approvals

While the BPI has not yet decided on pursuing legal action, the consideration of a lawsuit reflects the seriousness of the concerns raised by traditional banks. Legal proceedings could compel a reassessment of the OCC's licensing framework, which many in the banking sector view as inadequate for ensuring the integrity of the financial system.

The Guardian

There is a notable divide between the OCC's stance and the concerns raised by traditional banking institutions. While the OCC continues to approve applications from crypto firms, banking groups argue that these decisions lack sufficient regulatory oversight. The OCC has not publicly responded to requests for comment regarding the potential lawsuit or the criticisms from banking associations.

The GuardianTraditional Banks Consider Lawsuit Against OCC Over Crypto Charter Approvals

• “allowing firms to choose a lighter regulatory touch while offering bank-like products could blur the statutory boundary of what it means to be a ‘bank,’ heighten systemic risk and undermine the credibility of the national banking charter itself” — Bank Policy Institute

The Guardian

• “would create a significant loophole in a foundation principle of bank regulation” — Independent Community Bankers of America

The Guardian

As the situation evolves, the banking industry remains vigilant, and further developments are expected as the BPI deliberates its next steps.

Traditional Banks Consider Lawsuit Against OCC Over Crypto Charter Approvals