Banking Group Sues to Block Crypto's 'Side Door' Into the Banking System
The Independent Community Bankers of America sued the Office of the Comptroller of the Currency, challenging its authority to grant national trust bank charters to crypto firms. The group argues a March 2026 rule unlawfully lets firms conduct substantial non-fiduciary business while avoiding requirements imposed on insured banks, including certain capital, liquidity, supervision and consumer-protection obligations. It says the charters may also displace state protections without providing customers federal deposit insurance. The lawsuit seeks to invalidate the rule and revoke Protego Holdings’ conditional charter, citing governance and risk-control concerns. The case adds to growing disputes over the OCC’s crypto charter approvals, as the agency prepares stablecoin rules under the GENIUS Act.
