A trade group representing US community banks sued the Office of the Comptroller of the Currency on October 2, 2026, arguing the regulator exceeded its authority by opening national trust bank charters to crypto firms. The suit targets a March 2026 rule the group says lets digital asset companies operate without the safeguards traditional banks must follow.
A trade organization representing community banks sued a US bank regulator Friday, claiming its decision to grant limited bank charters to firms that primarily engage in crypto products exceeds its regulatory authority. The Independent Community Bankers of America (ICBA) filed the suit in the US District Court for the District of Columbia.
ICBA wants the OCC to revoke a recent rule and related guidance smoothing the way for crypto firms to apply for national trust bank charters. The group argued granting such charters to crypto firms grants legitimacy but without sufficient safeguards.
What the lawsuit targets
The rule at the center of the case is a final rule the OCC issued on March 2, 2026, which created a path to national trust bank charters for entities whose business is not strictly fiduciary. That widened the lane to include non-fiduciary custody arrangements, so holding assets for safekeeping without a broader fiduciary role now fits under the same umbrella.
ICBA argues this goes beyond what the National Bank Act allows. The complaint also contends the new charters let firms skip obligations that apply to traditional banks, pointing specifically to the Community Reinvestment Act and FDIC insurance. ICBA further argues that uninsured entities could use these charters to sidestep state consumer protections.
A long-running dispute
According to Crypto Briefing, ICBA President and CEO Rebeca Romero Rainey said the national trust charter was never intended to be a "side door" for digital asset companies. She also argued these firms often lack the federal consumer protections the public typically associates with traditional banks.
The lawsuit did not arrive out of nowhere. ICBA has opposed a series of charter applications from crypto firms dating back to at least 2025, including from Coinbase National Trust and Ripple.
What comes next
A federal charter can offer crypto custodians a single federal framework instead of a patchwork of state rules. The OCC now has to defend the rule it finalized on March 2, 2026 as squarely within its statutory powers.
What to watch next: the OCC's formal response in the District of Columbia court, any request to pause the rule while the case proceeds, and whether other banking groups or crypto firms join the fight on either side.
Sources: Reuters via Investing.com, Crypto Briefing
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