Full Breakdown
Community Banks Sue OCC Over Crypto Trust Charters
By Drooid · · How we work
ICBA Files Lawsuit Challenging OCC Crypto Trust Charters
On October 2, 2026, the Independent Community Bankers of America (ICBA) filed a complaint in the U.S. District Court for the District of Columbia. The suit alleges that the Office of the Comptroller of the Currency (OCC) exceeded its congressional authority when it allowed cryptocurrency firms to obtain national trust bank charters. The complaint seeks to invalidate the OCC’s March 2, 2026 final rule and Interpretive Letter No. 1176, arguing that the approach creates a “side door” into the banking system without the safeguards that apply to insured depository institutions.
Background & Context
The OCC’s March 2 2026 rule clarified that national banks may engage in “non-fiduciary activities” alongside traditional trust functions. It codified Interpretive Letter 1176, originally drafted during the Trump administration, and expanded the agency’s ability to grant national trust charters. Under those charters, firms can hold and safeguard assets and settle payments but cannot take deposits or make loans. The OCC previously approved trust charters for fintech and crypto firms, including entities linked to Crypto.com, Coinbase, and World Liberty Financial.
Timeline
- March 2 2026 – OCC issues final rule and Interpretive Letter 1176.
- October 2 2026 – ICBA files lawsuit in Washington, D.C.
Data & Statistics
- The OCC has approved 21 national trust charters since the rule’s adoption; 13 are for cryptocurrency companies.
- Recipients include Foris DAX (operator of Crypto.com), Coinbase, World Liberty Trust Company, and Protego Holdings Corp.
- The ICBA argues that these charters bypass Community Reinvestment Act (CRA) requirements, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to traditional community banks.
Official Statements & Responses
An OCC spokesperson declined to comment on the litigation.
Jonathan Gould, Comptroller of the Currency, has previously argued that custody and safekeeping services have been performed electronically for decades and that the trust charter was intended to accommodate non-fiduciary activities.
Verbatim Quotes
- “Congress did not create the national trust charter to provide a workaround for digital asset companies,” — Rebeca Romero Rainey, president and CEO
- “American consumers reasonably expect a federally chartered bank to carry federal protections. Digital assets held at a crypto firm operating under a national trust charter do not carry those important safeguards,” — ICBA President
- “The rule effectively permits the OCC to charter uninsured national trust banks that engage substantially in non-fiduciary crypto-related activities while avoiding the regulatory framework applicable to traditional banks,” — Lee Reiners, Duke University fellow
Conflicting Reports & Gaps
Sources differ on the exact count of trust charters issued to crypto firms. Some reports cite “several” approvals under the Trump administration, while others specify 13 crypto-related charters out of a total of 21. The OCC has not provided a detailed breakdown of charter applications or the criteria used to evaluate non-fiduciary activities, leaving a gap in public understanding of the agency’s decision-making process.
What’s Next
The court will evaluate whether the OCC’s interpretation of its statutory authority aligns with the National Bank Act. A ruling could restrict future grantings of national trust charters to crypto and fintech firms, potentially reshaping the regulatory pathway for digital-asset companies seeking federal banking credibility.