US Banks Sue Banking Regulator Over Trust Charters for Crypto Companies
The Independent Community Bankers of America filed a lawsuit seeking to invalidate a rule, an interpretive letter, and a conditional approval that granted crypto companies national fiduciary status.
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The Independent Community Bankers of America filed a lawsuit against the Office of the Comptroller of the Currency and its regulator Jonathan Gould in the U.S. District Court for the District of Columbia on October 2, according to the Spanish edition of Cointelegraph. The lawsuit targets a regulatory pathway followed by the OCC to grant companies operating in digital assets banking status at the national level.
The lawsuit challenges a final rule issued in March 2026, Interpretive Letter No. 1176, and the conditional approval granted by the OCC to Protego. The association contends that these combined steps enabled digital asset companies to obtain national fiduciary status without a clear legislative mandate from Congress.
The bankers base their lawsuit on the "major questions doctrine," which requires regulatory agencies to obtain explicit authorization from Congress when making decisions with broad economic impact. They emphasize that the OCC exceeded the authority defined by law through these steps, and that the impact is not limited to the companies involved but extends to the structure of the banking sector as a whole.
The association is asking the court to invalidate the challenged actions. The Office of the Comptroller of the Currency declined to comment on the lawsuit, and no judicial ruling has been issued yet. The case is expected to set boundaries for the authority of U.S. regulators in dealing with crypto companies seeking banking regulatory status, an issue that has recurred before the courts in recent years.
What do these terms mean?
National Trust Charter: A federal license allowing a company to conduct fiduciary activities nationwide. Major Questions Doctrine: A judicial rule requiring clear authorization from Congress for regulatory decisions with broad economic impact. Interpretive Letter: A clarification issued by a regulator to explain how an existing rule applies. Vacating an Action: A court decision ending the validity of a rule or license.
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