Bankers sue to overturn OCC trust-bank rule used by crypto firms

According to CryptoSlate, the Independent Community Bankers of America filed a lawsuit in a Washington federal court against the Office of the Comptroller of the Currency. The complaint asks the court to vacate the OCC's national trust bank rule and Interpretive Letter 1176, arguing the agency exceeded its authority by expanding limited-purpose trust charters for fintech and crypto enterprises.

The lawsuit follows OCC approvals of national trust bank charters for entities including Agora National Trust Bank, Catena Trust Bank, and Bastion Platforms. The ICBA claims the agency has approved or conditionally approved 21 trust banks, with 13 connected to cryptocurrency operations. Banking groups previously challenged applicants individually without success.

The OCC finalized its national trust bank rule earlier, replacing fiduciary activity wording with broader trust company language. The agency previously stated that courts must exercise independent judgment on whether the National Bank Act authorizes these charters. If the court rules against the OCC, pending applications could face delays and existing charters may require restructuring, while a victory would solidify the federal pathway for crypto trust operations.