U.S. Community Bank Group Sues OCC Over Crypto Trust Bank Charters, Alleges Abuse of Authority
JH Kim
Summary
- The Independent Community Bankers of America, or ICBA, filed a lawsuit against the Office of the Comptroller of the Currency over national trust bank charters for crypto firms.
- The ICBA said the OCC's approval of national trust bank charters for crypto firms exceeded the scope of authority set out in the National Bank Act.
- The ICBA also raised concerns about regulatory fairness, saying the charters let crypto firms avoid some obligations imposed on traditional banks.
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The Independent Community Bankers of America, or ICBA, has sued the Office of the Comptroller of the Currency over the regulator's approval of national trust bank charters for crypto firms, alleging the agency exceeded its legal authority.
According to media reports on October 2, the ICBA argued in its lawsuit that the OCC's decision to allow national trust bank charters for crypto companies goes beyond the authority granted under the National Bank Act.
The group also alleged that the OCC effectively changed its role and powers without separate approval from Congress.
It added that the charters allow crypto firms to avoid some obligations imposed on traditional banks.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.