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The Independent Community Bankers of America sued the Office of the Comptroller of the Currency, asking a federal court to invalidate an OCC rule and related guidance on national trust bank charters. ICBA alleges the framework lets crypto firms enter the banking system without the scrutiny and obligations applied to community banks; the OCC has said the rule clarifies existing authority rather than expanding it.
The Independent Community Bankers of America (ICBA) has sued the Office of the Comptroller of the Currency (OCC), asking a federal court to strike down a rule and related guidance governing national trust bank charters. The association alleges the framework lets cryptocurrency firms pursue federal bank charters without the same regulatory obligations faced by community banks; the OCC has said its rule clarifies existing authority and does not expand its power to charter national banks.
ICBA said in a Friday, October 2, press release that its lawsuit challenges the OCC’s March 2 final rule related to Interpretive Letter No. 1176. The association argues that the rule and guidance purport to give the regulator authority to charter national banks that Congress did not grant under the National Bank Act. It wants the court to declare both unlawful.
ICBA President and CEO Rebeca Romero Rainey said the OCC exceeded its authority by allowing national trust banks to conduct substantial non-fiduciary activities. She argued that firms using the trust charter could seek the credibility of a federal charter without obligations that apply to insured depository institutions, including Community Reinvestment Act requirements, consolidated supervision, capital and liquidity standards, and FDIC insurance. These are ICBA’s claims in the lawsuit, not findings by a court.
The OCC’s description of the rule differs. When it issued the final rule, the agency said it clarified the longstanding authority of national banks limited to trust company operations and related activities to conduct non-fiduciary activities as well as fiduciary services. The agency said the rule would “neither expand nor contract” its authority to charter a national bank. The OCC did not immediately respond to PYMNTS’ request for comment on the suit.
The Dispute Over Trust Charter Standards
The case concerns whether a national trust charter can support activities beyond traditional fiduciary services, and what regulatory requirements apply when a chartered institution undertakes them. A ruling for ICBA could constrain the OCC’s interpretation of its chartering authority or require changes to the rule and guidance. A ruling for the OCC could leave its approach in place, subject to any further legal or regulatory challenges.
The disagreement also carries consequences for firms seeking entry into the federally regulated banking system and for existing banks competing with them. ICBA says crypto firms could gain a federal charter without the same obligations as insured banks. The OCC’s stated position is that the rule clarifies authority that national trust banks have long used for certain non-fiduciary custody and safekeeping services. The court’s review will test those competing readings; the lawsuit itself does not establish that any firm has received preferential treatment.
The Bank Policy Institute (BPI), which has commented on national trust bank charter applications, said innovative firms should be able to offer products in the regulated banking system if they follow the rules that apply to other institutions conducting the same activities. Its position puts the focus on how a charter’s permitted operations and corresponding obligations should be matched.
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How the OCC Rule Defines Trust Banks
On March 2, the OCC said its amendment was intended to address possible confusion in earlier regulatory text and align its rule more closely with the National Bank Act. The agency has long supervised national trust banks, including institutions that conduct non-fiduciary custody and safekeeping alongside fiduciary work.
PYMNTS reported that explicitly referring to the “operations of a trust company and activities related thereto” could give trust-chartered banks room to conduct a broader range of activities than traditional fiduciary functions alone. That is a description of the rule’s potential scope, not a court determination about the agency’s legal authority. The lawsuit now asks a federal court to decide whether the OCC’s rule and guidance fit within the authority Congress granted.
“Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter without the Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance that apply to insured depository institutions.”
— Rebeca Romero Rainey, ICBA president and CEO
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The Court and Charter Questions Ahead
No court has ruled on ICBA’s claims, and the available account does not identify a hearing date, a response from the OCC to the lawsuit, or a timetable for a decision. It is also unclear how the challenged rule and guidance would affect individual crypto firms or charter applications while the case proceeds. The OCC’s immediate response to PYMNTS’ request for comment was not available.
The legal dispute will turn on how the court interprets the National Bank Act and the OCC’s authority over national trust banks. The source material does not provide the complaint’s full arguments or identify any specific charter application that the suit would directly halt. ICBA’s claims about the obligations firms could avoid remain allegations unless established through the legal process.
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Court Review Will Set the Next Milestone
The next major development is expected to be the OCC’s formal response and the court’s schedule for considering the case. The source material provides no hearing date or expected ruling timeline. Until those details emerge, the challenged rule’s legal status and any effect on pending or future charter applications remain unsettled.
Readers should watch for court filings that clarify the relief ICBA seeks, the OCC’s defense of its interpretation, and any rulings on whether the case can proceed. Any judgment could define how far national trust banks may extend beyond fiduciary services under the OCC framework, but the outcome and its reach are not yet known.
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Key Questions
Who sued the OCC?
The Independent Community Bankers of America sued the Office of the Comptroller of the Currency, according to the association’s October 2, 2026, announcement.
What does ICBA want the court to do?
ICBA is asking a federal court to declare unlawful the OCC’s March 2 final rule and related guidance concerning national trust bank charters.
What is the OCC’s position on the rule?
The OCC said the rule clarifies longstanding authority for national banks limited to trust company operations and related activities. It said the rule would neither expand nor contract its authority to charter national banks.
Has a court decided whether the OCC acted lawfully?
No ruling is reported in the source material. ICBA’s assertions are allegations in a pending lawsuit, and the OCC’s interpretation has not been resolved by the court.
What happens next in the case?
The OCC is expected to respond through the legal process, and the court will set the next steps. No hearing date or decision timetable is provided in the available report.
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