Wall Street Banking Giants Threaten Legal Action Against OCC Over Crypto Bank Charter Approvals

A major Wall Street banking consortium is preparing to sue the Office of the Comptroller of the Currency, warning that the regulator's accelerated approval of national trust charters for cryptocurrency and fintech firms creates systemic risks that could destabilize the U.S. financial system. The move targets policies championed by OCC head Jonathan Gould, a Trump-era appointee who has streamlined charter access for crypto companies seeking to operate nationwide without traditional banking oversight.

The BPI asked the OCC to reject national trust charter applications in October 2025

In January, World Liberty Financial, a crypto company associated with Donald Trump’s family, applied for a national trust charter from the Office of the Comptroller of the Currency. Bank industry groups have so far stayed quiet about the company’s regulatory bid, though it has provoked criticism in Congress.

Last year, however, in an October warning, the Bank Policy Institute argued that firms that create bank-like products under looser regulatory rules could muddle what legally constitutes a bank, heighten systemic risks, and weaken the standing of the national banking charter.

Paige Pidano Paridon, the institute’s Executive Vice President and Co-Head of Regulatory Affairs had commented: “BPI supports efforts to bring innovative new products and services into the regulated ecosystem and agrees that digital assets have a role to play in the U.S. financial system, provided that they are subject to the same rules and responsibilities as every other chartered institution engaging in the same activities.”

At the time, the group also requested the Office of the Comptroller of the Currency to deny national trust charter applications from Circle, Ripple, and the London-headquartered payments firm Wise.

The Bank Policy Institute is reportedly now thinking of filing a lawsuit against the Office of the Comptroller of the Currency, according to a source close to the matter. While it would be an uncommon step for the Bank Policy Institute, it wouldn’t be the first time. The organization sued the Federal Reserve in late 2024 over contested amendments to stress-testing regulations, which the Fed later promised to revise.

Joshua Chu, a lawyer and co-chair of the Hong Kong Web3 Association, believes that talk of litigation by legacy banks is about protesting, not supervision itself, but rather about newcomers gaining from modern charters and being limited by rules that date back nearly a century. But he also acknowledged that, without regard for global norms, the OCC’s crypto charter regime could place regulators under significant pressure and damage their reputation, leaving them vulnerable to future enforcement and credibility crises.

The Conference of State Bank Supervisors also opposes the OCC’s approach to crypto licensing

Beyond the BPI, smaller banks and state regulators are also pushing back against broader crypto licensing. The Conference of State Bank Supervisors recently wrote to the OCC that letting crypto and payments companies bypass “core federal banking laws” would erode competition, consumer protection, and financial stability.

Moreover, the Independent Community Bankers of America, which represents roughly 50,000 small lenders, likewise pressed the OCC to abandon or change its plan to grant licenses to crypto firms.

They contended the proposed changes could threaten a core principle of bank oversight and pose significant policy challenges to consumers and the financial system. The American Bankers Association also asked the OCC in February to hold off on approving new charters until stablecoin and digital asset regulations are completed.

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