Community banks sue US regulator over crypto firm charters
XLF•The Independent Community Bankers of America sued the Office of the Comptroller of the Currency, arguing that its rule and guidance enabling crypto firms to seek national trust bank charters exceed the regulator’s authority. The group represents banks that typically have less than $10 billion in assets.
1. Banks challenge charters
The Independent Community Bankers of America filed suit in the U.S. District Court for the District of Columbia, asking it to require the OCC to revoke a recent rule and related guidance for crypto firms seeking national trust bank charters. The group argues that the charters give crypto firms legitimacy without sufficient safeguards and exceed the regulator’s authority and Congress’ intent.
2. Charter limits and response
The charters allow companies to manage and hold customer assets and settle payments faster, but not to take cash deposits or make loans. ICBA President and CEO Rebecca Romero Rainey said consumers expect federally chartered banks to carry federal protections and called for firms seeking the benefits of a federal charter to meet the same standards as community banks. An OCC spokesperson declined to comment.
