Community Bankers Sue to Close Crypto's 'Side Door' Into US Banking

Community bankers sue the OCC over crypto charters

The Independent Community Bankers of America (ICBA) filed suit against the Office of the Comptroller of the Currency (OCC) on October 2 in the U.S. District Court for the District of Columbia. The complaint, brought under the Administrative Procedure Act, challenges the OCC's March 2 final rule and Interpretive Letter No. 1176. The group asks the court to declare both measures unlawful and to return the regulator to what it calls its statutory limits. Earlier coverage: Coinbase and Moov Push Stablecoins Into 1,000 Community Banks Ahead of Senate Vote →.

ICBA says the OCC exceeded its legal authority

The trade group argues the OCC stretched the National Bank Act to charter crypto companies as national trust banks. These firms can conduct substantial non-fiduciary activities that the trust charter was never meant to cover, the ICBA says. The rule codifies an interpretation written during President Donald Trump's first term by Jonathan Gould, now the Comptroller of the Currency.

"Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter.", 2 October 2026. — Rebeca Romero Rainey, President and CEO, Independent Community Bankers of America

Crypto firms gained charters without bank-level rules

Under the current administration, the OCC has approved a series of trust charters for crypto firms, including Coinbase, Circle, and the Trump-linked World Liberty Financial. A national trust bank charter lets a firm offer custody and fiduciary services across the country under federal oversight. The ICBA contends these entities entered the banking system without facing the capital, liquidity, and supervision standards imposed on community banks. They also avoid Federal Deposit Insurance Corporation (FDIC) insurance requirements, the group says.

Circle anchors a large stablecoin market

Circle, one of the named charter recipients, issues the USDCstablecoinREAD →. USDC carried a market capitalization near $74.1 billion on October 3 (CoinPaprika, 3 October 2026). The ICBA argues that firms operating at this scale should meet the same requirements as insured banks performing comparable activities. The case will test which federal standards apply to large stablecoin issuers.

ICBA has long opposed the charter approvals

The lawsuit follows months of opposition. The ICBA previously urged the OCC to deny or rescind applications from firms including Coinbase and Crypto.com. In December 2025, the regulator conditionally approved five national trust charters for nonbank financial technology companies.

A second banking group backs tougher standards

The Bank Policy Institute, which represents larger banks, has backed stricter treatment of charter applicants. Its position mirrors the ICBA's call for equal rules across institutions that perform the same activities. Both groups want crypto firms subject to the full supervisory regime that covers insured depository institutions.

"BPI supports efforts to bring innovative new products and services into the regulated banking ecosystem, provided that the entities engaging in those activities are subject to the same rules and responsibilities as every other chartered institution engaging in the same activities.", 2 October 2026. — Paige Pidano Paridon, Executive Vice President and Co-Head of Regulatory Affairs, Bank Policy Institute