Odaily Planet Daily reports that the Bank Policy Institute (BPI), an industry association representing 40 major banks including JPMorgan, Goldman Sachs, and Citigroup, is considering filing a lawsuit against the U.S. Office of the Comptroller of the Currency (OCC). BPI argues that the OCC’s move to make it easier for cryptocurrency and fintech companies to obtain national bank trust charters may endanger U.S. consumers and the stability of the financial system. BPI contends that allowing such companies to offer banking-like services without being subject to the same stringent regulations blurs the legal definition of “bank” and increases systemic risk. Previously, BPI has urged the OCC to reject the charter applications from Circle and Ripple. Additionally, World Liberty Financial, a crypto business operated by the Trump family, has also applied for such a charter. Currently, both the Conference of State Bank Supervisors (CSBS) and the Independent Community Bankers of America (ICBA) oppose this policy, arguing that it could undermine competition and compromise financial stability.

The U.S. Bankers Association Considers Suing the OCC Over Relaxed Crypto Bank Licensing Rules

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A U.S. banking group representing 40 major banks, including JPMorgan and Goldman Sachs, is considering legal action against the OCC for relaxing access to national bank trust licenses for crypto firms. The Bank Policy Institute argues that the move jeopardizes consumer protection and financial stability, particularly in liquidity and crypto markets, and raises CFT concerns by permitting firms to offer bank-like services under lighter oversight. World Liberty Financial, affiliated with the Trump family, has applied for such a license. The CSBS and ICBA have also criticized the policy.

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