Bankers sue to overturn OCC trust-bank rule used by crypto firms
The Independent Community Bankers of America sued the OCC on Oct. 2, asking a federal court to overturn its national trust bank rule and Interpretive Letter 1176. The group argues the OCC exceeded its authority by allowing limited-purpose trust charters to cover nonfiduciary crypto activities under a lighter framework than insured banks face. The challenge could affect existing and pending crypto-linked charters, especially those involving stablecoin issuance and reserves, nonfiduciary custody, payments, conversion and settlement. The OCC maintains that the law authorizes trust-company operations and related activities, including some nonfiduciary custody. A court ruling could either reinforce the federal charter route for crypto infrastructure or narrow it, potentially prompting firms to restructure or seek state and bank partnerships.
