Crypto Council for Innovation defends OCC trust charters against ICBA lawsuit

On October 5, 2026, Ji Hun Kim, CEO of the Crypto Council for Innovation (CCI), stated that the organization remains "confident" in the OCC's approval of national trust charters for crypto companies, despite the Independent Community Bankers of America (ICBA) filing a lawsuit challenging these authorizations.

CCI defends OCC trust charters for crypto businesses

During an interview, Ji Hun Kim described the ICBA's complaint as a "clear attempt to resist national trust charters, payments innovation, and competition in financial services." The CCI argues that OCC-approved charters enable crypto sector actors to access federal banking credibility without the usual constraints, fostering payment innovation. According to the CCI, traditional compliance requirements would be too burdensome for digital business models, necessitating an adapted framework.

The CCI highlighted that the OCC has already approved or conditionally approved several charter requests, including those from World Liberty Financial, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. These approvals, initiated under the Trump administration, demonstrate the regulator's intent to establish a "side door" for crypto firms seeking to operate under a federal banking charter.

ICBA sues OCC: Allegations of inadequate safeguards

The ICBA filed its lawsuit on Friday in the U.S. District Court for the District of Columbia, alleging that the OCC granted banking charters to crypto entities without required safeguards, including compliance with the Community Reinvestment Act, consolidated supervision, capital and liquidity standards, and FDIC insurance. Rebeca Romero Rainey, ICBA's president and CEO, asserted that "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 Community Reinvestment Act obligations, consolidated supervision, capital and liquidity standards, and FDIC insurance."

This legal action aims to force the OCC to revise its evaluation criteria, with lawmakers arguing that crypto firms could exploit charters as loopholes to bypass prudential requirements imposed on traditional banks. The lawsuit comes as several U.S. lawmakers intensify their scrutiny of the sector, citing risks of money laundering and financial stability.

National trust charters: Who has been approved

Among those approved, World Liberty Financial sparked the most controversy due to its familial ties with former President Donald Trump. The approval was completed under Jonathan Gould's leadership, appointed by Trump and in office since July 2025. The other entities—Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos—received either full approval or conditional approval, opening the door to fully fledged banking services such as FDIC-insured deposit holdings.

These decisions were presented by the OCC as a response to growing demand for digital financial infrastructure, but they raise questions about regulatory consistency between traditional institutions and new crypto actors. The CCI emphasized that conditional charters already impose enhanced compliance requirements, albeit less stringent than those for traditional banks.

Political reactions and regulatory risks

The ICBA lawsuit unfolds against a political backdrop where several Congress members advocate for stricter cryptocurrency legislation. Some lawmakers have proposed amendments to subject national trust charters to more rigorous parliamentary scrutiny, arguing that delegating power to the OCC could set dangerous precedents.

For now, the OCC has not officially commented on the complaint, but the regulator previously indicated it would continue working "in partnership with industry stakeholders" to refine oversight frameworks. The debate could influence future directions for the Federal Reserve and the Financial Stability Oversight Council, which monitor systemic risks related to new funding forms.

Implications for the U.S. crypto sector

If the court rules in favor of the ICBA, crypto firms could lose access to federal charters, forcing their operations into fragmented and potentially more costly state licenses. This could hinder the expansion of payment and deposit services offered by actors like Circle or Ripple, who rely on the credibility of a national charter to attract institutional partners.

Conversely, a ruling unfavorable to the ICBA would strengthen the OCC's position as a pillar of financial innovation, offering crypto firms a stable framework to raise capital and develop banking products. Market observers, including CoinTelegraph, note that the U.S. regulatory trajectory will remain a key factor for digital asset valuation and institutional investor confidence.