- The Independent Community Bankers of America is suing the Office of the Comptroller of the Currency over national trust charters for crypto firms.
- The OCC has received 40 applications for new bank charters in roughly 18 months, including 23 tied to digital assets.
- The dispute could influence how US federal trust charters apply to crypto companies as stablecoin markets expand globally.
ICBA challenges OCC crypto trust charters
The Independent Community Bankers of America (ICBA) is challenging the Office of the Comptroller of the Currency (OCC) over national trust charters granted to cryptocurrency companies. The banking group argues that digital assets held by crypto firms operating under national trust charters do not receive the same federal protections associated with federally chartered banks.
“American consumers reasonably expect a federally chartered bank to carry federal protections.” — ICBA President and CEO Rebeca Romero Rainey, in an ICBA statement on the lawsuit against the OCC
ICBA President and CEO Rebeca Romero Rainey said the issue raises questions about whether consumers may assume that assets held by crypto companies with national trust charters benefit from the same safeguards as assets held by traditional federally chartered banks. An OCC spokesperson declined to comment to Reuters.
Community banks and Elizabeth Warren had already raised concerns
The dispute follows months of opposition from community banks and lawmakers. In May, the ICBA objected to the charter application filed by Payward, the parent company of Kraken. OCC records show that the application for Payward National Trust Company was submitted on May 8.
Senator Elizabeth Warren raised similar concerns in a May letter. She said the OCC had granted at least nine national trust charters to crypto firms since December 2025 and questioned whether some of the companies’ activities could be classified as activities permitted for a trust company.
“These companies are effectively crypto banks that want to evade the fundamental safeguards and obligations that come with being a bank.” — Senator Elizabeth Warren, in a May 18 letter to Comptroller Jonathan Gould
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OCC says rules clarify existing charter powers
The OCC has taken a different position on the scope of the charters. Its final chartering rules, which took effect on April 1, state that the rules “would neither expand nor contract” the agency’s chartering authority. Instead, the OCC says the rules explain that trust-limited national banks may perform a range of nontraditional functions connected to the activities of trust companies.
The scale of interest in the charters has intensified the debate. Comptroller Jonathan Gould said the OCC had received 40 applications for new bank charters over roughly 18 months, with 23 connected to digital assets. Earlier materials from Cryptopolitan described that volume as eight times higher than the number of applications received during the preceding four years.
OCC charter applications: 40 total, including 23 tied to digital assets.
Why the OCC lawsuit matters to the global crypto market
The charter dispute extends beyond the US banking system because it could help define the legal and regulatory position of crypto companies operating under federal trust charters. The case may clarify how broadly the US national trust company framework can be used in the digital-asset sector and how much weight a federal charter carries in global crypto markets.
The broader market is also expanding. A study by the Bank for International Settlements indicates that the volume of stablecoins could exceed $300 billion by 2026, with 98% of the market linked to the US dollar. At the same time, the Financial Stability Board has identified significant gaps in how different jurisdictions implement regulations, creating opportunities for regulatory arbitrage.
Why This Matters
The OCC lawsuit places consumer protections, bank obligations and the regulatory treatment of crypto firms at the center of a growing US charter debate. The number of digital-asset-related applications suggests that national trust charters are becoming an increasingly important route for crypto companies seeking a formal position within the financial system. The outcome could affect how regulators, banks and consumers understand the protections associated with those charters while jurisdictions worldwide continue developing crypto rules.
Frequently Asked Questions
What is the ICBA challenging?
The ICBA is challenging the OCC over national trust charters for crypto firms and arguing that consumers may not receive the same federal protections associated with federally chartered banks.
How many crypto-related charter applications has the OCC received?
According to Comptroller Jonathan Gould, the OCC received 40 applications for new bank charters in roughly 18 months, including 23 tied to digital assets.
Why could the dispute affect global crypto markets?
The case could clarify how US national trust charters apply to crypto companies. Its implications may extend globally as stablecoin markets grow and regulatory gaps between jurisdictions create opportunities for regulatory arbitrage.
