Crypto trust charters: community banks sue OCC over Circle, Coinbase approvals

Crypto trust charters are now the subject of a federal lawsuit. The Independent Community Bankers of America sued the Office of the Comptroller of the Currency on Friday, 2 October. The case was filed in federal court in Washington, DC.

The group argues that the OCC has no power to charter non-fiduciary crypto firms as national trust banks. It wants the court to vacate the agency’s rule, a guidance letter and the approval granted to Protego.

The legal argument against crypto trust charters

ICBA says the OCC misread a 1978 amendment to the National Bank Act. It also invokes the major questions doctrine. That principle says Congress must clearly authorise sweeping regulatory moves.

The lawsuit adds a procedural claim. ICBA says the OCC failed to answer public comments properly when it wrote its 2026 rule.

ICBA leadership said consumers expect a federally chartered bank to carry federal protections. It argued that digital assets held at a crypto firm with a trust charter do not carry those safeguards.

Who is affected

At least 13 crypto companies have received full or conditional OCC approval since December 2025. Ripple, BitGo, Fidelity Digital Assets and Paxos were approved that month. Crypto.com, Protego and Bridge followed in February. Coinbase received approval in April, and Laser Digital in May. Circle won final approval in July.

A ruling against the OCC could unsettle plans for all of them. A ruling for the agency would cement a new route into the federal system for crypto firms.

Markets showed little reaction. CoinDesk listed bitcoin at about $84,786, up 0.26 percent, this weekend. The coin has held a narrow range around $84,000 for days, as our report on the Blast shutdown and weak jobs data noted.

The case will take months. Watch whether the court allows the existing approvals to stand while it decides.

Fact basis: Yahoo Finance, American Banker and CoinDesk reports, 2 to 4 October 2026. This is news reporting, not investment advice. Crypto assets are volatile, and you can lose money.