Stablecoins
Community Bankers Challenge OCC Over Crypto Trust Bank Charters
The Independent Community Bankers of America (ICBA) has initiated legal action against the Office of the Comptroller of the Currency (OCC) regarding its recent approvals of national trust bank charters for cryptocurrency companies. The lawsuit, filed on October 2, 2026, in the U.S. District Court for the District of Columbia, challenges a March 2026 final rule that the ICBA argues improperly extends the OCC’s authority.
The ICBA claims that the OCC's decision to allow national trust bank charters for non-fiduciary activities, including significant cryptocurrency operations, exceeds the statutory powers granted by Congress. The complaint specifically seeks to overturn the rule and revoke the conditional approval given to Protego Holdings Corp., one of the firms that received such a charter.
According to ICBA President and CEO Rebeca Romero Rainey, the OCC's actions represent a misuse of the national trust charter, which was not intended to provide a pathway for crypto firms to gain federal banking credibility without adhering to the same regulations that apply to traditional banks. The lawsuit contends that the OCC's approvals are arbitrary and ignore warnings regarding the inadequate risk management and governance structures of these crypto firms.
As of now, the OCC has approved or conditionally approved 21 national trust bank charters, with at least 13 allocated to cryptocurrency companies. The ICBA argues that these approvals could lead to significant risks in the banking system, particularly if the volatile cryptocurrency market experiences a downturn.
In a related development, Rain, a company focused on stablecoin payments, has applied to the OCC for a national trust bank charter, named Rain National Trust Bank (RNTB). This application comes just days after the ICBA's lawsuit and seeks to establish a federally supervised entity that would not take customer deposits or make loans, focusing instead on fiduciary custody of digital assets and reserve management for stablecoin issuers.
FAQ
What is the Independent Community Bankers of America (ICBA) challenging in their lawsuit?
The ICBA is challenging the Office of the Comptroller of the Currency's (OCC) approvals of national trust bank charters for cryptocurrency companies, arguing that it improperly extends the OCC's authority and exceeds statutory powers granted by Congress.
What specific action is the ICBA seeking through their lawsuit?
The ICBA is seeking to overturn the OCC's March 2026 final rule and revoke the conditional approval given to Protego Holdings Corp. for a national trust bank charter.
Why does the ICBA believe the OCC's actions are problematic?
The ICBA believes the OCC's actions misuse the national trust charter, allowing crypto firms to gain federal banking credibility without adhering to the same regulations as traditional banks, which could pose significant risks to the banking system.
How many national trust bank charters has the OCC approved for cryptocurrency companies?
As of now, the OCC has approved or conditionally approved 21 national trust bank charters, with at least 13 allocated to cryptocurrency companies.
What is the purpose of Rain's application for a national trust bank charter?
Rain's application for a national trust bank charter, named Rain National Trust Bank (RNTB), aims to establish a federally supervised entity focused on fiduciary custody of digital assets and reserve management for stablecoin issuers, without taking customer deposits or making loans.