The Independent Community Bankers of America has sued the US Office of the Comptroller of the Currency over its framework for granting national trust bank charters to cryptocurrency companies. The trade group filed the case on October 2 in the US District Court for the District of Columbia, arguing that the OCC exceeded the authority Congress gave it under the National Bank Act. Reuters and CoinDesk reported that the lawsuit asks the court to overturn the regulatory rule and related guidance.
At the center of the dispute is the OCC’s March 2, 2026 final rule and Interpretive Letter No. 1176. The ICBA says the measures allow companies focused primarily on digital assets to enter the federal banking system and conduct activities beyond the fiduciary services traditionally associated with trust banks. The group argues that national trust charters were not designed as an alternative route for crypto firms seeking federal status without becoming conventional insured banks.
National trust banks can provide services such as custody and payment settlement, but they do not take deposits or make loans in the same way as traditional commercial banks. Because they are not insured depository institutions, the ICBA says they are not subject to the same mix of Federal Deposit Insurance Corporation coverage, Community Reinvestment Act obligations, consolidated supervision, and capital and liquidity standards. The organization also argues that consumers may see a federal charter and assume protections that do not apply to digital assets held by an uninsured trust bank.
The case reflects a broader struggle over how crypto custody, stablecoins and payment services should fit into the US banking system. The OCC has granted or conditionally approved trust charters for several digital-asset businesses as federal regulators seek to bring more crypto activity under established supervisory frameworks. Supporters view national charters as a way to replace fragmented state-by-state requirements with consistent oversight, while banking groups say the approach creates unequal standards between crypto firms and insured community banks.
One conditional approval challenged in the lawsuit involves Protego Holdings, a company offering digital-asset custody, trading, lending and issuance services. The ICBA is asking the court to vacate that approval along with the rule and interpretive guidance supporting the wider charter policy. Reuters reported that the OCC declined to comment on the litigation. The case will therefore turn on whether federal banking law permits the agency to charter national trust banks that do not take deposits and, according to the plaintiffs, do not primarily perform traditional fiduciary functions.
What it means for traders: The lawsuit does not immediately change the status of existing charters, but it adds legal uncertainty around the infrastructure used by regulated crypto custodians and stablecoin businesses. If the court restricts the OCC’s authority, affected firms could face delays, altered compliance structures or greater reliance on state licensing. If the OCC prevails, the ruling could reinforce the national trust charter as a path for digital-asset companies seeking a federal operating framework. Bitcoin and Ethereum prices are not directly determined by the case, but institutional access and custody rules can influence participation in those markets.
The next steps will include the OCC’s formal response and any requests for preliminary court action while the case proceeds. Traders and institutions will also watch whether other banking groups or state regulators join the challenge, and whether Congress addresses the legal gap alleged by the ICBA. The dispute arrives as US regulators continue to define separate rules for crypto custody, stablecoins and investment products, making the court’s interpretation of the OCC’s chartering power important for the next phase of institutional digital-asset adoption.