The Independent Community Bankers of America (ICBA) filed a lawsuit on October 2 in federal court in Washington, D.C., alleging the Office of the Comptroller of the Currency (OCC) lacks legal authority to charter non-fiduciary crypto companies as national trust banks. The legal action names Comptroller Jonathan Gould in his official capacity and challenges the administrative foundations supporting recent digital asset approvals.
ICBA Seeks to Overturn OCC Guidance and Rules
The complaint targets three primary administrative actions: the March 2026 final rule, Interpretive Letter 1176 from January 2021, and Protego's conditional approval granted in February 2026. Gould originally authored the 2021 letter while serving as the OCC's senior deputy comptroller and chief counsel. According to the filing, the OCC misapplied a 1978 amendment to the National Bank Act to charter trust banks that neither take deposits nor act as fiduciaries.
The trade group argues that such significant expanded authority requires clear authorization from Congress under the major questions doctrine. Additionally, the ICBA claims the March 2026 rule was arbitrary and capricious due to a brief two-page response to public comments, while the 2021 letter bypassed required public notice and comment procedures. The lawsuit asks the court to invalidate the policies and revoke existing approvals, as discussed in ICBA Sues OCC Over March 2026 Crypto National Trust Bank Charters.
Impact on 13 Digital Asset Firms
Under the Trump administration, the OCC has approved or conditionally approved 21 trust banks, with at least 13 being digital asset companies. In December 2025, the OCC issued conditional approvals for Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos. Circle went on to receive final approval in July.
Subsequent conditional approvals were granted to Stripe-owned Bridge, Crypto.com, and Protego in February 2026, followed by Coinbase on April 2, and Nomura's digital asset arm Laser Digital on May 29. The Trump family-backed World Liberty Trust Company secured conditional approval in August, while Agora, Catena Labs, and Bastion received conditional approvals on September 18.
"American consumers reasonably expect a federally chartered bank to carry federal protections. Digital assets held at a crypto firm operating under a national trust charter do not carry those important safeguards," said ICBA President and CEO Rebeca Romero Rainey.
The suit arrives ahead of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which takes effect by January 18, 2027. The ICBA asserts that the upcoming legislation cannot retroactively validate charters illegally issued by the OCC.
Key Takeaways
- Legal Challenge: The ICBA filed an October 2 complaint in Washington, D.C. against the OCC and Comptroller Jonathan Gould.
- Contested Actions: The suit seeks to vacate the March 2026 final rule, January 2021 Interpretive Letter 1176, and Protego's February 2026 conditional charter.
- Affected Industry: At least 13 crypto firms hold charters or conditional approvals, including Circle, Ripple, Coinbase, and World Liberty Trust Company.
Why It Matters
This legal action represents a direct challenge from traditional banking institutions against crypto companies seeking federal bank status without traditional deposit insurance requirements. If the federal court rules in favor of the ICBA, digital asset firms could lose their national trust charters, forcing them back into state-by-state money transmitter licensing regimes. The outcome will set a critical precedent regarding administrative authority over crypto banking integration ahead of the GENIUS Act's 2027 implementation date.
