Some of the largest US banks are reportedly weighing legal action against the Office of the Comptroller of the Currency after the regulator broadened access to national trust bank charters for crypto and fintech firms, a move industry groups say could expose consumers and the financial system to new risks.

The Bank Policy Institute, which represents about 40 major lenders including JPMorgan, Goldman Sachs and Citigroup, is assessing whether to sue the OCC following the regulator’s reinterpretation of federal licensing rules, according to a source familiar with the group’s deliberations cited by The Guardian on Monday. The trade body has not yet decided whether to proceed with a lawsuit.

The dispute centres on the OCC’s decision to make it easier for crypto, payments and fintech companies to obtain national bank trust charters. The licence allows firms to operate under federal supervision and serve customers across all 50 states, while bypassing some state-level banking rules.

Jonathan Gould, the US comptroller of the currency, defended the policy when announcing earlier approvals, saying: “New entrants into the federal banking sector are good for consumers, the banking industry and the economy.” The OCC has not responded to requests for comment on the potential legal challenge.

Banking groups argue that the policy allows companies offering bank-like services to operate without the same level of regulatory scrutiny applied to traditional lenders. In an earlier statement opposing several applications, the Bank Policy Institute warned that “allowing firms to choose a lighter regulatory touch 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”.

The regulator has already conditionally approved several charters for digital asset and blockchain finance firms, including BitGo, Fidelity Digital Assets, Ripple and Paxos, according to reports cited by Cointelegraph. Other companies have followed with applications, while blockchain infrastructure provider Zerohash submitted its own request on 27 February.

Political scrutiny has also intensified after World Liberty Financial, a cryptocurrency venture linked to Donald Trump’s family, applied for a charter in January to expand the use of its USD1 stablecoin. Members of Congress have raised concerns about the proposal, although bank lobby groups have not publicly commented on the specific application.

State regulators and community banks have separately criticised the OCC’s approach. The Conference of State Bank Supervisors wrote in a letter last month that approving such licences for crypto and payments companies outside core federal banking rules could risk “undermining competition, consumer protection and financial stability”.

The Bank Policy Institute has previously taken legal action against regulators, including a 2024 lawsuit against the Federal Reserve over proposed changes to stress tests, which the central bank later agreed to revise.

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