US community banks sue feds to halt crypto bank licenses

Homepage > News > Business > US community banks sue feds to halt crypto bank licenses TL;DR: The Independent Community Bankers of America sued the OCC on October 2 over its crypto trust bank charters, saying the agency exceeded its authority. Meanwhile, the OCC’s October 14 debanking report barely mentions crypto. Bank of America’s $1.2 billion AML penalty energized crypto advocates who claim banks were the real compliance problem. Binance faces a DoJ probe into whether Iran-linked activity breached its 2023 settlement. Key Takeaways: America’s community banks sued the feds over crypto trust charters: the ICBA filed suit against the OCC and Comptroller Jonathan Gould on October 2. The OCC has approved or conditionally approved 21 trust banks since 2025, 13 of them crypto-related, with Block, Rain, and Modern Treasury applications now pending. The OCC says crypto firms were debanked, but its October 14 report gives digital assets only a passing reference and focuses mainly on coal, oil and gas, firearms, prison, and tobacco companies. Bank of America told crypto’s critics “hold my beer” in effect: its $1.2 billion AML penalty, including a record $750 million OCC fine and ov...