Community bankers sued the Trump administration on Friday after regulators moved to grant bank charters to a wave of cryptocurrency companies, the latest chapter in a fight between traditional banking and crypto. The lawsuit by the Independent Community Bankers of America accuses the regulators of allowing “highly risky cryptocurrency and digital asset activities” to enter the banking system without submitting them to the same level of regulatory oversight as banks.
The lawsuit names the Office of the Comptroller of the Currency and its head, Jonathan Gould. Under Gould, the OCC has granted preliminary approval to a slew of national trust charter applications by crypto companies. The ICBA argues that the OCC has overstepped its statutory authority and that its actions “place community banks at a severe competitive disadvantage,” according to the lawsuit.
The lawsuit asks a federal court in Washington, D.C. to vacate a rule and guidance. “Congress did not create the national trust charter as a side door into the banking system for crypto firms,” said Rebeca Romero Rainey, ICBA President and CEO. A bill that would have created a crypto regulatory framework collapsed in the Senate last month after an intense campaign by banks.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing