Community banks sue the OCC over crypto trust charters

The banking industry has taken its fight over crypto charters to court. The Independent Community Bankers of America sued the Office of the Comptroller of the Currency in federal court, CoinDesk reported on October 2.

The trade group's argument is about legal authority. It says the OCC went beyond what the National Bank Act allows when it granted national trust-bank charters to crypto firms. The companies named as holding or seeking those charters include Coinbase, Circle, Crypto.com, Protego, Erebor and World Liberty Financial.

Behind the legal claim is a competitive one. A national trust charter gives a crypto firm a single federal supervisor and a standing close to a bank's. The community bankers say those firms get that standing while facing lighter capital, liquidity and deposit-insurance requirements than banks do. In their view, that is an uneven field.

The case matters well beyond the firms listed. The trust charter has become a main route for crypto companies seeking federal oversight, and a ruling against the OCC could put charters already granted in doubt along with those still pending.

For now, nothing has slowed. The OCC said it does not comment on litigation, and new applications are still being filed. The court's schedule will set the pace from here.