Community banks sue OCC over crypto trust bank charters

A U.S. community banking group has filed a lawsuit against the Office of the Comptroller of the Currency (OCC), arguing that the regulator exceeded its authority by allowing crypto companies to apply for limited national trust bank charters. The Independent Community Bankers of America filed the case on Friday in the U.S. District Court for the District of Columbia. The group says the OCC has given crypto firms the benefits of a federal bank charter without requiring the same standards that apply to insured depository institutions, such as Community Reinvestment Act obligations, consolidated supervision, capital and liquidity rules, and FDIC insurance. The lawsuit follows a series of OCC actions this year approving or conditionally approving trust charter applications from crypto firms. Unlike traditional commercial banks, these charters do not permit companies to take deposits or make loans.