A major US banking lobby group is weighing legal action against the Office of the Comptroller of the Currency over its decision to grant national trust bank charters to crypto companies.
The Bank Policy Institute is reportedly considering a lawsuit after the regulator moved ahead with a reinterpretation of federal licensing rules allowing crypto firms to apply for national trust bank charters.
“BPI cautions that endorsing this pathway and 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,’ heighten systemic risk and undermine the credibility of the national banking charter itself,”
The group said.
Under Comptroller Jonathan Gould, the OCC has already granted conditional charter approvals to crypto firms including Ripple, BitGo and Paxos.
If fully approved, the charters would allow these companies to operate as national trust banks offering custody and asset safekeeping services.
Other banking organisations have also raised concerns, including the Independent Community Bankers of America, which has urged the OCC to reconsider its proposal to issue such licences.
The debate intensified after Trump-linked World Liberty Financial applied for a similar charter earlier this year, drawing scrutiny from Senator Elizabeth Warren over potential conflicts of interest.
At the time of reporting, World Liberty Financial price was $0.1019.