ICBA Sues OCC Over National Trust Bank Charters for Crypto Firms

Washington, D.C. (Oct. 2, 2026) - Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the lawsuit filed today in the U.S. District Court for the District of Columbia against the Office of the Comptroller of the Currency (OCC) for authorizing novel entities primarily dealing in cryptocurrencies to enter the banking system without being subject to the same rigorous regulatory framework or safeguards as community banks:

"The OCC's decision to allow companies to obtain national trust bank charters to conduct substantial non-fiduciary activities exceeds the authority Congress granted the agency," ICBA President and CEO Rebeca Romero Rainey said. "Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter without the Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to insured depository institutions.

"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 is asking the court to return the OCC to its statutory limits. Any non-fiduciary firm seeking the benefits of a federal bank charter should meet the same standards as community banks."

The lawsuit filed today under the Administrative Procedure Act against the OCC centers on the March 2, 2026, final rule related to Interpretive Letter No. 1176. It asks the federal court to find both the final rule and the letter unlawful. This rule and its related guidance attempt to provide the OCC with sweeping new powers to charter national trust banks that are not authorized by the National Bank Act. ICBA maintains the OCC has far exceeded its limited statutory authority to charter trust banks that perform fiduciary activities, vastly expanding the powers granted by Congress to create what the lawsuit refers to as a "gaping hole in financial regulation."

Unlike community banks, national trust banks that do not take deposits fall outside much of federal financial regulation, and the charter preempts many state regulations, including consumer protection laws. The OCC's final rule and Interpretive Letter No. 1176 "perversely regulate trust banks far more lightly than traditional banks, allowing entities engaged in highly risky cryptocurrency and digital assets activities to enter the banking system under the national trust charter rather than the more rigorously regulated traditional bank charter," the lawsuit states. Prior to the recent influx of national trust applications and approvals, the OCC had never chartered a national bank that neither took deposits nor engaged in fiduciary activities, and the OCC has not managed an uninsured bank receivership in nearly 100 years.

Conditionally approved national trust bank charters include Protego Holdings Corp., which ICBA opposed, citing severely flawed risk and control functions and governance structures that lack independent oversight. Protego - which primarily provides digital asset custody, trading, lending, and issuance - laid off most of its workforce in 2023 and dealt with vendor lawsuits for failure to pay bills, resulting in judgments against the company. In February 2026, Protego received conditional approval for a national trust bank charter. The OCC failed to respond to concerns about the importance of separating banking from commerce, the company's flawed risk structure, the creation of an unequal playing field for traditional banks, and potential harm to consumers. The ICBA lawsuit also asks the court to vacate Protego's conditionally approved national trust bank charter.

About ICBA

The Independent Community Bankers of America has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation's community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America's community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers' financial goals and dreams. For more information, visit ICBA's website at icba.org.