US Banking Group Weighs OCC Lawsuit Over Crypto Trust Charters

The Bank Policy Institute (BPI), representing major US banks like Goldman Sachs and JPMorgan, is contemplating legal action against the Office of the Comptroller of the Currency (OCC). This consideration stems from the OCC's decision to grant national trust bank charters to several cryptocurrency firms, including BitGo, Fidelity Digital Assets, Ripple, and Paxos, as well as more recent approvals for Crypto.com, Bridge, Stripe, and World Liberty Financial. The BPI argues that these charters could pose risks to the American financial system and believes the OCC disregarded warnings from banking groups regarding its reinterpretation of federal licensing rules. A national trust bank charter allows companies to operate as trust banks under federal law, engaging in fiduciary activities. While the BPI hasn't finalized its decision, it previously urged the OCC to reject such applications from firms like Ripple and Circle, advocating for greater oversight than currently provided.

(Source：Cointelegraph)