UPDATE: ICBA sues OCC in DC court to strike down crypto trust bank charters
CIE News ·
Following earlier reports of legal action, the ICBA filed suit on October 2, 2026, challenging OCC rules under the APA and seeking to vacate Protego's conditional charter.
The Independent Community Bankers of America filed a lawsuit on October 2, 2026, against the Office of the Comptroller of the Currency in the U.S. District Court for the District of Columbia. As previously reported, community banks are challenging the regulator's authority to grant national trust charters to cryptocurrency companies. According to Decrypt, the complaint was brought under the Administrative Procedure Act and asks the court to invalidate a March 2, 2026, final rule linked to Interpretive Letter No. 1176.
The trade association argues that the policy creates a side entrance into the federal banking system for digital asset firms without requiring standard safeguards. ICBA President and CEO Rebeca Romero Rainey stated that allowing entities to receive trust charters while conducting non-fiduciary operations exceeds the statutory powers granted by Congress. The group highlighted that these firms bypass FDIC insurance, consolidated supervision, capital and liquidity mandates, and Community Reinvestment Act obligations.
The legal filing also specifically targets Protego Holdings, asking the court to vacate the firm's conditional charter due to alleged issues in risk control and governance, Decrypt reported. The OCC is currently working toward a November deadline to finalize stablecoin rules under the GENIUS Act.