Community banks sue OCC over crypto trust bank charters

What happened

The Independent Community Bankers of America sued the Office of the Comptroller of the Currency on Friday. The group argues the regulator let cryptocurrency companies obtain limited national trust bank charters beyond the authority Congress gave it. The case was filed in the US District Court for the District of Columbia.

Circle, Ripple, BitGo and Paxos are among the crypto-focused firms that have pursued national trust bank charters. Coverage in August said the OCC, under President Donald Trump and agency head Jonathan Gould, had approved or conditionally approved several crypto applications for such charters.

Circle received final authorization to establish First National Digital Currency Bank, N.A., which will operate as Circle National Trust. Ripple previously secured approval for Ripple National Trust Bank, and BitGo and Paxos have also taken part in the OCC's trust-bank approval process.

Why it matters

The ICBA says the OCC has handed crypto firms the credibility of a US bank charter without the safeguards that apply to insured depository institutions. Its president and CEO, Rebeca Romero Rainey, said the OCC's decision exceeds the authority Congress granted the agency, and that Congress did not create the national trust charter as a side door into the banking system.

The dispute centers on a final rule the OCC published in March 2026. The rule clarified that national banks limited to trust-company operations can also conduct related non-fiduciary activities. The OCC said at the time that the rule neither expanded nor contracted its existing chartering authority. The lawsuit asks the court to declare the rule and Interpretive Letter N1176 unlawful.

Trust bank charters do not let companies accept deposits or make loans, which sets them apart from conventional commercial banks.

The ICBA is asking the court to return the OCC to its statutory limits. A ruling against the regulator could affect other digital asset firms seeking similar licenses.

Background

• Under President Donald Trump and OCC head Jonathan Gould, the agency approved or conditionally approved multiple applications from crypto companies seeking trust charters, Cointelegraph reported in August.
• Circle's charter would let the USDC issuer provide fiduciary crypto custody to itself and affiliates, according to the report.

What is still unclear

• The OCC was asked for comment on the lawsuit but had not replied by the time of publication, leaving its response unknown.
• The ICBA contests the OCC's position that the rule neither expanded nor contracted its existing chartering authority.

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