The U.S. Office of the Comptroller of the Currency (OCC) has encouraged community banks to apply to issue payment stablecoins as the regulator faces a lawsuit from the banking sector over its approval of crypto-focused trust banks.

 

REGULATION | Community Banks Sue U.S. Regulator Over Crypto Trust Bank Charters

 

The OCC has said it was encouraging the development of stablecoin capabilities among community banks following the finalization of rules implementing the GENIUS Act which establishes a federal framework for payment stablecoins. The rules take effect in January 2027.

 

 

The move comes as the Independent Community Bankers of America challenges the OCC’s authority to grant national trust bank charters to crypto firms arguing that they can offer overlapping services without facing the same regulatory requirements as traditional banks.

 

REGULATION | Community Banks Sue U.S. Regulator Over Crypto Trust Bank Charters

 

The trade group, which represents banks typically holding less than $10 billion in assets, filed the lawsuit in the U.S. District Court for the District of Columbia. It is seeking to overturn an OCC rule and related guidance that facilitate applications for national trust charters by crypto firms.

The ICBA said the charters give crypto companies the credibility associated with a federal bank charter without subjecting them to the same regulatory requirements as traditional banks including

  • capital and liquidity standards,

  • consolidated supervision,

  • Federal Deposit Insurance Corp. insurance, and

  • Community Reinvestment Act obligations.

The lawsuite comes 7 months after the Bank Policy Institute (BOI), a lobbying group representing some of the largest U.S. banks, said it was also considering legal action against the regulator’s move to grant national trust bank charters to crypto and fintech firms.

 

 

REGULATION | U.S. Banking Lobby Weighs Lawsuit Against OCC Over Crypto Trust Charters

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