The Independent Community Bankers of America (ICBA) filed a lawsuit on Friday in the U.S. District Court for the District of Columbia against the Office of the Comptroller of the Currency (OCC), stating that the regulator exceeded its authority by allowing crypto companies to obtain national trust bank charters.

According to the ICBA, the OCC granted crypto firms a status comparable to a U.S. banking charter without sufficient safeguards or adherence to standard banking requirements. "The OCC's decision to allow companies to obtain national trust charters for conducting substantial non-fiduciary activities exceeds the authority granted by Congress," said ICBA President and CEO Rebeca Romero Rainey, citing the lack of obligations under the Community Reinvestment Act, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to insured depository institutions. The ICBA is asking the court to require the OCC to operate within its statutory limits.

The OCC was asked for comment regarding the lawsuit, but had not responded by the time of publication.

Previously, the agency approved crypto firm applications for trust charters

Previously, under the Trump administration and OCC head Jonathan Gould, the agency approved or conditionally approved several applications from crypto companies seeking national trust charters to expand their services in the United States.

Trust charters are not equivalent to commercial banks

Such charters do not grant the right to accept deposits or issue loans, distinguishing them from traditional commercial banks.