Crypto Firms Sue OCC Over Trust Bank Charters
Community banks sue OCC over granting trust bank charters to crypto firms, citing regulatory concerns.
A group of community banks has filed a lawsuit against the Office of the Comptroller of the Currency (OCC) over the agency's decision to grant trust bank charters to crypto firms. (cointelegraph.com)
The trust bank charters do not allow companies to accept deposits or make loans, distinguishing them from conventional commercial banks. (cointelegraph.com)
The OCC's decision to allow companies to obtain national trust bank charters to conduct substantial non-fiduciary activities exceeds the authority Congress granted the agency. (cointelegraph.com)
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. (cointelegraph.com; coindesk.com)
Firms should not get trust charters unless they only engage in 'trust activities,' according to a banking industry expert. (coindesk.com)
Rigorous, uniform standards are essential to fostering a competitive, safe and resilient banking system. (coindesk.com)
The OCC has approved or conditionally approved multiple applications from crypto companies seeking trust charters to expand their services in the US. (cointelegraph.com)