The Independent Community Bankers of America has filed a federal lawsuit against the Office of the Comptroller of the Currency, challenging the regulator’s decision to grant national trust-bank charters to a growing number of cryptocurrency companies.
The banking group argues that the OCC has exceeded the authority granted to it under the National Bank Act and is allowing digital-asset firms to enter the U.S. banking system without facing the same regulatory obligations as traditional community banks. According to CoinDesk, the lawsuit places the legal structure of crypto firms’ expansion into banking and payments at the center of a wider dispute over competition and supervision.
Why the banking group is challenging the OCC
The ICBA, one of the largest advocacy organizations representing smaller U.S. banks, says crypto companies with national trust charters are not being held to equivalent standards in areas such as capital, liquidity and regulatory oversight. It also says the firms generally do not face the same requirement for deposit insurance from the Federal Deposit Insurance Corp.
The group’s position is that the national trust charter should not be used as an alternative route into the banking system for companies seeking the credibility associated with a federal charter. ICBA President and CEO Rebeca Romero Rainey said Congress did not establish the charter as a “side door” for crypto firms.
The lawsuit argues that the OCC is using its authority to create what the ICBA describes as a serious competitive imbalance. Community banks traditionally accept customer deposits and provide a range of banking services while operating within a framework that includes prudential supervision and, where applicable, FDIC insurance. The banking group says crypto trust companies are gaining access to the banking system without carrying comparable responsibilities.
The OCC declined to comment on the case when approached by CoinDesk, saying the agency does not comment on litigation.
Crypto companies seeking a place in regulated finance
National trust charters allow institutions to conduct trust-related activities under federal supervision, but the crypto firms receiving them do not necessarily operate like conventional community banks. The companies cited in the reporting generally do not offer the same cash deposit accounts for which FDIC insurance is designed and required.
The OCC has nonetheless been approving a steady stream of trust charters for digital-asset businesses. Some applicants have been created specifically as crypto-focused banks, including Protego and Erebor. Other charter holders or applicants have links to established companies in the crypto industry, including Coinbase, Circle and Crypto.com.
World Liberty Financial is another recent addition. The firm is partly owned by President Donald Trump and his family, and its charter approval has drawn criticism from opponents, including Democratic Senator Elizabeth Warren. Warren said on X that the approval gave Trump and his family another potential way to profit, while accusing the agency of allowing presidential corruption.
The OCC also granted a full national bank charter last month to OpenReserve Bank, a blockchain-focused bank funded by crypto investors including Andreessen Horowitz, Jump Capital and Coinbase Ventures. A full national bank charter is distinct from a trust charter, making the decision another example of a digital-asset business seeking a formal position within the U.S. banking system.
Part of a broader banking and stablecoin dispute
The ICBA’s lawsuit follows its opposition to the Digital Asset Market Clarity Act, which failed to advance in the U.S. Senate last month. The banking group objected in part to the bill’s stablecoin provisions, arguing that they did not adequately protect community banks from direct competition involving deposit accounts, a central part of their business.
A stablecoin is a digital token designed to maintain a relatively stable value, commonly by being linked to a traditional currency or other assets. The debate over stablecoins has brought crypto businesses and traditional banks into closer competition over payments, customer funds and financial infrastructure.
The Bank Policy Institute said it supports bringing innovative products and services into the regulated banking system, but only when institutions carrying out the same activities are subject to the same rules and responsibilities. Its executive vice president and co-head of regulatory affairs, Paige Pidano Paridon, said firms should receive trust charters only when they limit themselves to trust activities. If they want to perform traditional banking activities, she said, they should pursue full-service banking charters.
The broader charter push has also been credited by banking regulators with helping revive the creation of new banking names after a long period in which few new institutions entered the market. The lawsuit now raises the question of whether that expansion is occurring under a consistent regulatory framework.
Moneyiar market picture
Moneyiar data at 8:58-8:59 a.m. on October 3, 2026, showed mixed performance among the listed digital assets:
- Uniswap (UNI): $9.2597698337, up 2.16% over 24 hours but down 4.19% over seven days.
- Compound (COMP): $24.7534545072, up 1.01% over 24 hours and 3.23% over seven days.
- Comedian (BAN): $0.0628406677, down 4.77% over 24 hours and 9.02% over seven days.
- TROLL (SOL): $0.0451261311, down 4.67% over 24 hours and 8.84% over seven days.
These market movements provide a snapshot of selected crypto assets, while the ICBA case concerns the legal status, supervision and competitive position of companies seeking access to regulated banking infrastructure.
