Community bank group sues US regulator over crypto firm charters

The Independent Community Bankers of America sued the Office of the Comptroller of the Currency on Friday in the US District Court for the District of Columbia. The trade organization represents community banks. The group claims the regulator exceeded its authority by granting limited bank charters to firms primarily engaged in crypto products.

The group says the regulator must revoke a recent rule and related guidance easing applications by crypto firms for national trust bank charters. The group argues that granting crypto firms such charters gives the firms legitimacy without sufficient safeguards.