The US banking lobby is weighing legislation against the OCC over crypto trust banking charts
A group of bank representatives in the United States is considering taking legal action against the Office of the Comptroller of the Currency over the agency’s granting of banking charters to crypto firms.
Summary
- The Bank Policy Institute is considering legal action against the Office of the Comptroller of the Currency for its decision to grant national bank charters to crypto companies.
- Banking groups argue that the OCC is ignoring previous warnings from industry groups and state regulators while promoting licensing of crypto companies.
An unbiased source familiar with “lobby center thinking” informed the Guardian that the Bank Policy Institute plans to sue the OCC for ignoring earlier warnings from banking groups and state regulators and moving forward with its reinterpretation of state licensing laws to grant national crypto charters to crypto companies. According to the group, this could put the American people and the financial system at risk.
Under the leadership of Jonathan Gould, who was appointed by President Donald Trump, the OCC granted the first batch of conditional bank charter permits to crypto firms, including Ripple, BitGo, and Paxos, among others. Since then, several other firms have pursued similar accreditations.
Once approved, the National Trust Bank charter will allow these companies to operate as trust banks and provide custodial and custodial services.
In October, the BPI issued a statement urging the OCC to reject requests from crypto firms, including Ripple and Circle, as it says that granting such charters could endanger the financial system.
“The BPI warns that authorizing this approach and allowing firms to opt-out while offering banking-like products may blur the legal boundaries of what it means to be a “bank,” increase systemic risk and undermine the credibility of the national banking organization itself,” it said at the time.
According to The Guardian, BPI has yet to decide whether it is willing to take legal action against the OCC. However, the report noted that BPI was among a group of banks that had taken legal action against the Federal Reserve in late 2024 over its stress testing framework, which the central bank later agreed to review.
Similar warnings about the OCC’s crypto charter approval were issued by the Independent Community Bankers of America, which represents thousands of small lenders. Recently, ICBA urged the OCC to withdraw or modify its proposal to issue licenses to crypto firms.
As previously reported by crypto.news, the Trump-linked World Liberty Financial filed for charter in January, and this move has drawn a lot of scrutiny from Senator Elizabeth Warren for potential conflicts.
However, during the Senate Banking Committee hearing, Gould said the agency will continue to process the request.
