Small banks sue US regulator over crypto trust charters

The Independent Community Bankers of America has filed suit against the US Office of the Comptroller of the Currency, seeking to overturn rules letting cryptocurrency companies obtain national trust bank charters. The group argues that these charters allow crypto firms to gain federal legitimacy without meeting requirements like deposit insurance or community lending. The complaint asks a federal judge to invalidate the rule and block further charters, specifically targeting OCC actions from 2021 onward.

• Suit filed by Independent Community Bankers of America
• Targets OCC rules allowing crypto firm trust charters
• Argues charters bypass deposit insurance requirements
• Seeks to overturn specific charter approvals, including for Coinbase
• Case could restrict federal recognition of crypto companies