ICBA Files Lawsuit Against OCC Over Crypto Trust Bank Charters

The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in federal court in Washington, D.C., on October 2. The complaint argues that the OCC lacks the authority to charter non-fiduciary crypto firms as national trust banks.

The lawsuit targets three specific actions by the OCC, including the final rule established in March 2026, Interpretive Letter 1176 from January 2021, and the conditional approval granted to Protego in February 2026. The ICBA claims that the OCC misinterpreted a 1978 amendment to the National Bank Act, which they argue should not allow the chartering of trust banks that do not accept deposits or act as fiduciaries.

ICBA's complaint also invokes the major questions doctrine, asserting that such significant regulatory power requires explicit approval from Congress. They describe the OCC's actions as arbitrary and capricious, noting that the agency provided only a brief response to public comments regarding the rule.

As of now, the OCC has approved or conditionally approved 21 trust banks since the Trump administration, with at least 13 of these being crypto-related firms. Notable approvals include Circle, Ripple, BitGo, and Fidelity Digital Assets. The ICBA is seeking to vacate the OCC's rule and prevent the agency from using it to grant any further charters.

ICBA President and CEO Rebeca Romero Rainey emphasized the importance of consumer protection, stating that consumers expect federally chartered banks to provide federal safeguards, which they believe are absent in crypto firms operating under national trust charters.

This lawsuit comes ahead of the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which is set to take effect by January 18, 2027. The ICBA contends that this new law cannot retroactively address the charters already granted by the OCC.