Nikolas Sargeant
A major US banking trade group is reportedly considering legal action against the Office of the Comptroller of the Currency, arguing that granting cryptocurrency firms bank charters could endanger Americans and the financial system.
The Bank Policy Institute is weighing legal options after the OCC failed to address warnings from banking groups over its reinterpretation of federal licensing rules, according to a Monday report citing sources familiar with the organization's thinking.
In December, the OCC granted conditional national trust bank charter approvals to several cryptocurrency firms, including BitGo, Fidelity Digital Assets, Ripple, and Paxos. Additional companies have pursued similar approvals since, with blockchain infrastructure firm Zerohash submitting an application on February 27. The OCC also issued conditional licenses to Crypto.com, Bridge, and Stripe in February.
Trump-backed World Liberty Financial applied for a charter in January to expand use of its USD1 stablecoin but remains awaiting a decision. The applications represent accelerating integration of cryptocurrency businesses into federally regulated banking infrastructure.
The Bank Policy Institute, whose members include major US institutions such as Goldman Sachs, American Express, and JPMorgan, has expressed concern that cryptocurrency firms with national trust bank charters pose risks to the broader financial system.
A national trust bank charter is a federal license from the OCC permitting companies to operate as trust banks under federal law and engage in fiduciary activities including trust services, custody, and asset safekeeping. The designation provides regulatory legitimacy while avoiding full-service banking requirements.
The BPI has not made a final decision on whether to pursue legal action against the OCC. In October, the organization released a statement urging the OCC to reject national trust company charter applications from cryptocurrency firms including Ripple and Circle, arguing the charters would result in less oversight than required for full-service national banks.
The BPI was also among banking groups and business associations that filed a lawsuit against the Federal Reserve in late 2024 over its stress-testing framework for assessing banking sector health and resilience. The Fed has since agreed to reconsider portions of the framework and the case has been paused.
