The Bank Policy Institute (BPI), representing 40 major lenders including JPMorgan and Goldman Sachs, is weighing a lawsuit against the Office of the Comptroller of the Currency (OCC) over its approvals of national trust charters for crypto firms.
The OCC, led by Trump appointee and former crypto executive Jonathan Gould, has eased access to national bank trust charters for crypto and fintech firms.
Why it matters:
- Banks argue that OCC-chartered crypto firms bypass the supervision and controls required of fully licensed banks, raising consumer risk.
- A successful lawsuit may affect charter approvals already granted to firms such as Crypto.com and Ripple.
- The BPI previously sued the Federal Reserve over stress tests in late 2024. The Fed ultimately agreed to revise its rules.
The details:
- The Guardian, citing a source familiar with the lobby’s thinking, reported that BPI is considering legal action after the regulator “failed to heed repeated warnings from influential banking groups and state regulators over its reinterpretation of federal licensing rules.”
- The BPI urged the OCC in October to reject charter applications by Circle, Ripple, and Wise.
- Crypto.com received conditional OCC approval in late February. Ripple, Circle, Paxos, and Fidelity secured similar approvals in 2025. BitGo received full OCC approval in December 2025.
- Trump-backed World Liberty Financial’s subsidiary submitted its application to the OCC in January to establish World Liberty Trust Company, National Association (WLTC).
- US Senator Elizabeth Warren requested the OCC to delay its review of the application.
- Zerohash filed its own charter request last week.
The big picture:
- The Conference of State Bank Supervisors and Independent Community Bankers of America have also pushed back against OCC’s decision to hand over national trust bank charters to crypto firms.
- The legal threat signals a rare direct clash between Wall Street’s largest banks and the regulator.
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