TLDR
- BPI may sue the OCC over crypto trust bank charter approvals.
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Major banks warn crypto charters may lack the oversight of full banks.
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State regulators and community banks also oppose the OCC’s approach.
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OCC approvals include BitGo, Ripple, Paxos and several new applicants
Major US banks are weighing a challenge to the Office of the Comptroller of the Currency as the agency expands access to federal trust bank charters for crypto firms. The move has raised concerns across the banking sector as more applicants seek national approval.
Banks Review OCC Licensing Decisions
A new report states that the Bank Policy Institute is studying legal options after the OCC approved a wave of new national trust bank charters.
The Guardian, citing a source close to the group, reports that BPI members fear the move could expose customers to new risks. The BPI represents major US banks, and it has a long record of reviewing federal regulatory actions.
The OCC in December issued conditional charter approvals for BitGo, Fidelity Digital Assets, Ripple and Paxos. More firms have since applied, including Zerohash in late February. Crypto.com, Bridge and Stripe also received conditional trust charters the same month. The approvals allow firms to operate as national trust banks and serve clients across the country under federal law.
Concerns Raised by Major Lenders
According to the report, several BPI members argue that chartered crypto firms may not face the same level of review required for full-service national banks. The trade group is concerned that the OCC has reinterpreted federal rules in a way that lowers key barriers.
A BPI statement from October warned that “allowing firms to choose a lighter regulatory touch while offering bank-like products could blur the statutory boundary of what it means to be a bank.”
The BPI has not made a formal decision on litigation. The group also urged the OCC last year to reject applications from Circle, Ripple, and other firms seeking national trust charters. It argued that the existing approach could create risk for the broader market as crypto firms grow their presence in custody and asset safekeeping.
Political and Industry Reactions
The OCC is led by Comptroller Jonathan Gould, who previously worked in the crypto sector. His appointment came during the Trump administration, and the charter approach is viewed by some observers as part of a broader shift to bring digital asset firms into federal supervision. World Liberty Financial, a crypto firm linked to the Trump family, applied for a charter in January.
State regulators are also raising concerns. The Conference of State Bank Supervisors sent a letter to the OCC stating that granting federal approval to crypto and payment firms may place them outside “core federal banking laws.” The group added that the approach could weaken market safeguards.
The Independent Community Bankers of America also urged changes to the OCC plan. The group warned that the model “would create a major loophole in a foundation principle of bank regulation” and could pose policy concerns. The OCC has not commented on the pushback from banking groups.
Legal Options Remain Open
The BPI has sued federal regulators before, including a 2024 case against the Federal Reserve over stress-test rules. The Fed later agreed to revisit parts of its framework, and the case was paused. The new issue may again put the banking lobby in a legal contest with a major regulator.
For now, the BPI is reviewing whether the OCC’s current charter approach warrants a challenge, and its discussions remain ongoing.
