The Independent Community Bankers of America (ICBA) has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in a Washington D.C. federal court, challenging the regulator's authority to issue national trust bank charters to cryptocurrency companies. The suit, filed Friday, seeks to void a March 2, 2026 final rule and an associated Interpretive Letter No. 1176, arguing the OCC has overstepped the boundaries set by Congress.
ICBA President and CEO Rebeca Romero Rainey stated that these charters allow crypto firms to operate with the credibility of a federal bank without adhering to crucial obligations such as FDIC insurance, capital and liquidity standards, and the Community Reinvestment Act. The trade group contends that this creates a "side door into the banking system for crypto firms" and leaves consumers unprotected, as digital assets held by these firms do not carry the same federal protections as those in chartered banks.
The lawsuit specifically targets Protego Holdings, requesting its conditional charter be vacated due to alleged shortcomings in governance and risk control. This legal action escalates an ongoing dispute as numerous digital-asset companies, including Circle, Ripple, Kraken's parent company Payward, and World Liberty Financial, have pursued OCC charters. Senator Elizabeth Warren has also previously questioned the legality of these approvals.
