The Bank Policy Institute, a trade group representing 40 of the largest U.S. banks including JPMorgan Chase, Goldman Sachs, and Bank of America, is considering filing a lawsuit against the Office of the Comptroller of the Currency over its approval of national trust bank charters for crypto and fintech firms.
The potential legal challenge follows the OCC’s December 2025 conditional approval of charters for Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos, which banking groups argue grants federal imprimatur without subjecting firms to the same stringent capital and compliance requirements as traditional banks.
Core Legal Dispute and Regulatory Concerns
Banks’ Arguments Against Charter Approvals
The Bank Policy Institute contends that the OCC’s reinterpretation of federal licensing rules effectively allows crypto and fintech firms to offer bank-like products under a lighter regulatory touch. BPI warned that approving digital asset firms under trust charters “could blur the statutory boundary of what it means to be a ‘bank,’ heighten systemic risk and undermine the credibility of the national banking charter itself.”
Paige Pidano Paridon, BPI’s co-head of regulatory affairs, argued that digital asset firms should seek full-service national banking charters rather than limited-purpose trust licenses if they want to engage in traditional banking activities. The trade group emphasized its support for bringing innovative products into the regulated ecosystem, provided they are “subject to the same rules and responsibilities as every other chartered institution engaging in the same activities.”
Industry-Wide Opposition
The banking lobby’s resistance has intensified with additional warnings from other financial trade groups. In February 2026, the American Bankers Association urged the OCC to address specific risks concerning crypto firm charters that lack deposit insurance, calling for a suspension of charter approvals until the OCC confirms its receivership and resolution tools are sufficient for uninsured national banks.
The OCC’s pro-crypto stance has also drawn opposition from the Conference of State Bank Supervisors, representing financial regulators from all 50 states, and the Independent Community Bankers of America, which represents approximately 5,000 smaller lenders. State regulators warned that approving crypto and payments firms under trust charters could “undermine competition, consumer protection and financial stability.”
OCC’s Charter Approval Momentum
December 2025 Conditional Approvals
Despite mounting opposition, the OCC on December 12, 2025, granted conditional approvals for five companies simultaneously: Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos. This marked the first time the regulator had granted multiple crypto-native firms conditional charter approvals at once.
Comptroller of the Currency Jonathan Gould, a Trump appointee and former crypto executive, defended the approvals, stating that “new entrants into the federal banking sector are good for consumers, the banking industry and the economy.”
Expanding Pipeline of Applicants
The applicant pipeline has continued to grow in early 2026 as firms seek to consolidate issuance, settlement, and asset safeguarding under federal supervision. Crypto.com received conditional approval on February 23 to offer custody and staking services. Stripe subsidiary Bridge, which was acquired for $1.1 billion in February 2025, received conditional OCC approval on February 12 to issue stablecoins, custody digital assets, and manage reserves under direct federal oversight.
Revolut shifted its strategy on March 5, dropping plans to acquire a U.S. lender in favor of a de novo banking charter application with the OCC and FDIC. More than a half-dozen of 2025’s charter applicants have now received at least conditional approval.
World Liberty Financial Application
A notable entry into this regulatory queue is World Liberty Financial, the Trump family-linked crypto venture, which announced in January that its affiliate, WLTC Holdings LLC, had submitted an application for a national trust bank charter. The firm intends to use the charter to issue and custody its USD1 stablecoin, which has reached over $3.3 billion in circulation within its first year.
The proposed trust bank plans to offer three core services under federal supervision: stablecoin issuance and redemption with no fees at launch, on-ramp and off-ramp services converting between U.S. dollars and USD1, and secure custody for USD1 and other accepted stablecoins with conversion services.
Political Scrutiny and Congressional Oversight
Warren’s Challenge to WLFI Application
The World Liberty Financial application has drawn significant political scrutiny. During a February 2026 Senate Banking Committee hearing, Sen. Elizabeth Warren pressed Comptroller Gould to reject the application, warning he could become “an accomplice to corruption” if the Trump family-led crypto firm gains approval.
Warren noted that just before President Trump was sworn into office, a United Arab Emirates entity acquired a 49 percent stake in World Liberty Financial. She questioned whether WLF disclosed in its charter application that the UAE company was a principal shareholder, noting that OCC regulations require applicants to disclose all shareholders with at least a 10 percent stake.
“If you follow the law, you will reject the president’s application,” Warren told Gould. “As soon as you approve that application—and we all know you’re going to approve it—you go from being a cheerleader for President Trump to an accomplice in his corruption.”
Gould’s Response
Gould declined to discuss specific details of the application but stated he would follow established procedures outlined in regulations and the OCC’s licensing manual. When Warren pressed for access to the unredacted application, Gould responded that he would “be happy to entertain your request and discuss with my team and make sure that we’re doing and affording you the same privileges that we have afforded past administrations.”
Notably, Gould pushed back against accusations of political pressure, stating: “The only political pressure I have felt from any part of the United States Government, Senator, is from you.”
House Democrats’ Inquiry
House Democrats have also pressed Treasury Secretary Scott Bessent over the OCC’s review process, seeking clarity on what safeguards are in place to ensure the chartering process remains insulated from political or foreign influence.
GENIUS Act Regulatory Framework
Implementation of Federal Stablecoin Standards
Amid these individual applications, the OCC is moving to formalize the broader regulatory environment. In February 2026, the agency issued a notice of proposed rulemaking to implement the GENIUS Act, landmark legislation enacted in July 2025 that establishes federal standards for payment stablecoins.
The GENIUS Act generally prohibits any person other than a permitted payment stablecoin issuer from issuing a payment stablecoin in the United States. The legislation establishes requirements including one-to-one reserve backing and a statutory ban on issuers directly paying yield.
OCC’s Proposed Regulations
The OCC’s proposed rule would add a new Part 15 to its regulations, establishing the supervisory framework applicable to permitted payment stablecoin issuers subject to OCC jurisdiction. Key provisions include:
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Minimum Capital Requirements: De novo Federal qualified payment stablecoin issuers must maintain at least $5 million in minimum capital at inception, with the OCC retaining discretion to require higher levels based on risk profile.
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Application Process: A “substantially complete” application triggers a 120-day OCC decision clock, after which the application is deemed approved unless denied.
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Prohibition on Interest: Issuers may not pay interest, dividends, or any form of yield to holders; stablecoins must function as payment instruments, not investment products.
Broader Regulatory Context
The Federal Deposit Insurance Corporation and the National Credit Union Administration have previously issued their respective proposals to implement the GENIUS Act for institutions subject to their jurisdictions. The OCC’s proposal follows a spate of charter approvals that banking trade groups have characterized as proceeding without adequate public transparency.
Outlook and Potential Legal Action
Decision Pending
BPI has not yet made a final decision on whether to pursue legal action against the OCC. The trade group has declined to comment on the potential lawsuit.
Precedent for Legal Challenge
A lawsuit against a federal banking regulator would be rare but not unprecedented for BPI. The industry body sued the Federal Reserve in late 2024 following an uproar over changes to the central bank’s stress tests, leading the Fed to agree to change its rules with final proposals expected in March 2026.
FAQ: Banking Lawsuit Threat Over OCC Crypto Charters
Q: Why is the Bank Policy Institute considering suing the OCC?
A: BPI argues that the OCC’s approval of national trust charters for crypto and fintech firms allows them to offer bank-like products without being subject to the same stringent capital and compliance requirements as traditional banks, potentially heightening systemic risk and undermining the credibility of the national banking charter.
Q: Which crypto firms have received OCC conditional approval?
A: The OCC granted conditional approvals in December 2025 to Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos. In early 2026, Crypto.com and Stripe subsidiary Bridge also received conditional approvals.
Q: What is the World Liberty Financial application and why is it controversial?
A: World Liberty Financial, a Trump family-linked crypto venture, applied for a national trust bank charter to issue and custody its USD1 stablecoin. Sen. Elizabeth Warren and House Democrats have raised concerns about foreign investment in the firm and potential political influence in the OCC’s review process.
Q: What is the GENIUS Act and how does it relate to these charters?
A: The GENIUS Act, enacted in July 2025, establishes federal standards for payment stablecoins including one-to-one reserve backing and a ban on issuers paying yield. The OCC issued proposed rules in February 2026 to implement the legislation, creating a formal regulatory framework for stablecoin issuers.
