ICBA sues OCC over crypto firms’ national trust charters
The ICBA sued the OCC on Oct. 2, seeking to undo a rule and guidance it says let crypto firms pursue national trust charters without bank safeguards.
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The Independent Community Bankers of America sued the Office of the Comptroller of the Currency on Oct. 2, asking a federal court to block rules that ease crypto firms’ path to national trust bank charters. The lawsuit challenges the OCC’s authority to issue those charters to firms whose activities are not primarily fiduciary, according to Reuters’ report on the filing.
What OCC policy is the lawsuit challenging?
The ICBA’s suit, filed in the U.S. District Court for the District of Columbia, targets a March 2, 2026, final rule and related Interpretive Letter No. 1176. The trade group asks the court to find both unlawful, saying they give the OCC powers to charter national trust banks that Congress did not authorize, according to the ICBA’s announcement.
The dispute concerns trust charters for firms that may conduct substantial non-fiduciary business, such as digital asset services. ICBA President and CEO Rebeca Romero Rainey said the OCC’s decision exceeds its authority under the National Bank Act.
What safeguards does ICBA say are at stake?
ICBA argues that national trust banks that do not take deposits fall outside many rules that apply to insured banks. It says the charter route can offer crypto firms federal recognition without requirements such as FDIC insurance, capital and liquidity standards, consolidated supervision and obligations under the Community Reinvestment Act.
Those are the trade group’s claims in the lawsuit; the filing does not establish that the OCC or chartered firms have violated the law. The OCC’s rule and guidance set the framework for these applications, while the court will decide whether that framework exceeds the agency’s statutory authority.
Why does the suit name Protego?
ICBA is also asking the court to vacate Protego Holdings Corp.’s conditionally approved national trust bank charter. The OCC granted Protego conditional approval in February 2026, according to the trade group, which had opposed the application.
The case puts both the OCC’s March rule and its application to Protego before the D.C. court. ICBA is asking the court to set aside the rule, guidance and Protego charter.
Source material
- Reuters’ report on the filing — investing.com
- ICBA’s announcement — icba.org