US banking lobby weighs lawsuit against OCC over crypto, fintech national trust charters: report

The Bank Policy Institute, a trade group whose board includes JPMorgan Chase CEO Jamie Dimon, Goldman Sachs chief David Solomon, and Bank of America’s Brian Moynihan, is considering filing a lawsuit against the Office of the Comptroller of the Currency over the regulator’s move to grant national trust bank charters to crypto and fintech firms.

The potential legal challenge follows what banking groups describe as the OCC’s failure to “heed repeated warnings” about its “reinterpretation of federal licensing rules,” The Guardian reported on Monday, citing a “source familiar with the group’s thinking.”

According to the report, banks contend that granting these firms a national charter provides an official federal imprimatur without subjecting them to the same stringent capital and compliance requirements as fully fledged banks, a step that aligns with the administration’s broader push to integrate digital asset firms into the mainstream financial system. The BPI warned in October that this shift could “blur the statutory boundary of what it means to be a bank.”

The banking lobby’s resistance intensified in February when the American Bankers Association urged the OCC to address specific risks concerning crypto firm charters that lack deposit insurance. In a comment letter, the ABA called for a suspension of charter approvals until the OCC confirms its receivership and resolution tools are sufficient for uninsured national banks. 

Per The Guardian, the OCC’s pro-crypto stance has also met opposition from the Conference of State Bank Supervisors, representing regulators from all 50 states, and the Independent Community Bankers of America, which represents 5,000 smaller lenders.

OCC continues approvals amid opposition

Despite the mounting opposition, which traces back to as early as October when the BPI urged the OCC to reject applications by Circle and Ripple, the regulator on Dec. 12, 2025, granted conditional approvals for five companies simultaneously: Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos. 

Notably, it was the first time the OCC had granted multiple crypto-native firms conditional charter approvals at once.

Meanwhile, the pipeline of applicants has continued to expand in early 2026 as firms seek to consolidate issuance, settlement, and asset safeguarding under federal supervision. 

Crypto.com also received conditional approval on Feb. 23 to offer custody and staking services, while Revolut shifted its strategy on March 5, dropping plans to acquire a U.S. lender in favor of a de novo banking charter application with the OCC and FDIC.

A notable entry into this regulatory queue is World Liberty Financial, which announced in January that its affiliate, WLTC Holdings LLC, had submitted an application for a national trust bank charter. The firm intends to use the charter to issue and custody its USD1 stablecoin, which has reached over $3.3 billion in circulation. 

However, WLFI’s move drew significant scrutiny last month when House Democrats, led by Rep. Gregory Meeks, pressed Treasury Secretary Scott Bessent over the OCC’s review process, seeking clarity on what safeguards are in place to ensure the OCC’s chartering process remains insulated from political or foreign influence, citing reports of foreign investment in the firm.

Amid these individual applications, the OCC is moving to formalize the broader regulatory environment, issuing a proposal last month to implement the GENIUS Act. This landmark legislation, enacted in July 2025, establishes federal standards for payment stablecoins, including one-to-one reserve backing and a statutory ban on issuers directly paying yield.

© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.