On October 2, 2026, the Independent Community Bankers of America (ICBA) filed a lawsuit against the U.S. Office of the Comptroller of the Currency (OCC) for granting banking licenses to crypto firms. The lawsuit claims that the regulator is overstepping its authority by granting licenses to establish national trust banks for crypto firms. ICBA argues that such companies are not subject to the same standards as traditional banks, creating a competitive advantage for them.
ICBA, representing the interests of small banks in the U.S., states that the OCC "has proclaimed broad new powers to issue national trust banking licenses, which are not provided for by the National Bank Act." ICBA's representative, President and CEO Rebeca Romero Rainey, noted that crypto firms are not required to meet the same requirements as traditional banks, including capital standards, liquidity, oversight, and the necessity of insurance from the Federal Deposit Insurance Corporation (FDIC). Amid these developments, the group claims that in recent months, the OCC has been actively issuing licenses to crypto firms that do not offer the same cash deposit accounts for which FDIC insurance is designed and required. Crypto companies such as Protego, Erebor, Coinbase, and Circle have already received national trust licenses.
In a statement provided after the publication of this article, Bank Policy Institute Executive Vice President Paige Pidano Paridon expressed support for the introduction of new innovative products into the regulated banking system, but with the mandatory adherence to the same rules and obligations as other institutions with similar licenses. She added that firms should not receive trust licenses if they wish to engage in traditional banking activities, but should request full-service banking licenses. Recently, the OCC also issued a full national banking license to OpenReserve Bank, funded by crypto investors including Andreessen Horowitz and Coinbase Ventures. This licensing situation has drawn criticism, including from Democrat Elizabeth Warren, who accused the OCC of allowing "regulatory corruption" through the issuance of such licenses.
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