A banking group is suing to close a loophole that allowed cryptocurrencies into the banking system.

The Independent Community Banking Group of America sued the Office of the Comptroller of the Currency in federal court in Washington, D.C., for repeal of the March rule,[22] and a publication that interpreted it.[23]

The Independent Community Banking Group of America filed a lawsuit in federal district court for the District of Columbia on Friday challenging the authority of the U.S. Office of the Comptroller of the Currency to issue national trust bank licenses to crypto companies, and asking the Peck Court to overturn its final rule dated March 2,2026 along with an article I interpretation1176 by invoking jurisdiction under the United States Code of Federal Regulations.[3]

The National Trust banking license has been suspended.

The Independent Community Banking Group of America stated that the National Trust bank license has been expanded by the Office of the Superintendent of Banks to become a "side door" into the banking system for crypto companies. Chief Executive Officer Rebecca Romero Rainey saw this as opening up various firms to use such licenses to engage in significant non-trust activities beyond the scope of congressional authority granted to the agency.

In addition, the group argues that obtaining a national bank license helps crypto companies gain credibility comparable to federal banks without carrying the burden associated with deposit-guaranteed institutions such as U.S. Federal Deposit Insurance Corporation deposits, fund standards, quality standards, consolidated supervision regulation and Community Reinvestment Act.2026

The risk to consumer protection.

The lawsuit warns of consumer protection loopholes, noting that digital assets held with crypto companies operating under a trust license do not receive the federal protections customers expect from licensed banks. The group also argues that such licenses effectively override many state consumer-protection laws and regulate those firms less than traditional banking.[3]

The indictment specifically targets Protego Holdings, asking the court to revoke its conditional license citing deficiencies in regulatory oversight and risk control.

The background of the industrial license application

This lawsuit intensified an ongoing dispute between regulators and crypto companies. The U.S. Office of the Comptroller of the Currency has considered or received requests for licenses from several digital asset firms, including Circle, Ripple, Paxos, Fidelity, BitGo, Payward, which is the parent company of Kraken , Jack Dorsey's Block, and World Liberty Financial with ties to Donald Trump.2026

Senator Elizabeth Warren has come out to attack such approvals as illegal, a claim the industry disagrees with.

The battle of the stablecoin rules.

The lawsuit also comes as the U.S. Office of the Comptroller of the Currency (OCC) is accelerating legislation on stablecoins under the GENIUS Act to be finalized by November, adding an additional battlefield in this dispute over whether cryptos should be integrated into the federal banking system.

For the reader, this disclaimer suggests that a national banking license may be a pathway for crypto companies to build credibility, but it does not mean that storing digital assets in such licensed firms will receive the same protections as banks insured by federal deposits. The outcome of the case is still subject to follow-up.