Overview
- The Independent Community Bankers of America filed suit in U.S. District Court in Washington on Friday, Oct. 2, 2026, asking the judge to vacate the OCC’s March 2, 2026 final rule, its 2021 Interpretive Letter 1176, and Protego’s conditional charter approval.
- The OCC says it is only clarifying long‑standing authority to charter trust companies and has already granted conditional or full national trust charters to a range of crypto and fintech firms.
- The complaint argues the OCC exceeded the National Bank Act by letting non‑fiduciary custody and related crypto activities use the national trust charter, which ICBA says creates unfair competition for community banks that face different capital, supervision and Community Reinvestment Act obligations.
- Charter status does not make crypto assets eligible for FDIC deposit insurance because the FDIC explicitly excludes crypto holdings, so customers of federally chartered crypto custodians would not get typical deposit coverage.
- The case creates immediate legal uncertainty for pending and approved charters and could prompt OCC filings for stays or injunctions; a court ruling will shape whether national trust charters remain a federal path for crypto custody and related services.