WASHINGTON — Some of the largest U.S. banks are considering legal action against their federal regulator over a policy change that could make it easier for cryptocurrency, payments and fintech companies to obtain national banking licenses, according to a new report.
The Guardian reported that the Bank Policy Institute (BPI), which represents 40 of the nation’s largest lenders including JPMorgan Chase, Goldman Sachs and Citigroup, is weighing whether to sue the Office of the Comptroller of the Currency (OCC) after the agency moved forward with a reinterpretation of federal licensing rules.
As the Guardian noted, the OCC, led by Comptroller Jonathan Gould, a former cryptocurrency executive appointed during the Trump administration, has made it easier for fintech and crypto firms to obtain national bank trust charters. Such charters allow firms to operate across all 50 states under federal oversight.
Banks and industry groups argue the policy could allow fintech and crypto companies to offer bank-like services without being subject to the same level of supervision and regulatory requirements as traditional banks, The Guardian reported.
Rejection Urged
In October, the BPI urged the OCC to reject charter applications from cryptocurrency and blockchain firms Circle and Ripple, as well as London-based payments company Wise.
At the time, the group warned that allowing firms to operate with what it described as a lighter regulatory framework while offering bank-like products “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,” according to The Guardian.
The BPI’s board includes JPMorgan CEO Jamie Dimon, Bank of America CEO Brian Moynihan and Goldman Sachs CEO David Solomon.
The report also noted that the Trump family’s cryptocurrency venture, World Liberty Financial, applied in January for an OCC national trust bank charter, a move that has drawn scrutiny from lawmakers in Congress.
Earlier LitigationAccording to The Guardian, the BPI has not yet decided whether to pursue a lawsuit but is evaluating its legal options. It would not be the first time the organization has challenged regulators in court. The group sued the Federal Reserve in late 2024 over changes to the central bank’s bank stress tests, a dispute that ultimately led the Fed to revise its proposals
