Top US Banks Consider Legal Action Against Federal Regulator Over Crypto Banking Rules
By Kalyeena Makortoff, Washington | The Guardian | March 9, 2026
Several of the United States’ largest banks are reportedly weighing the possibility of suing a key federal regulator, challenging newly introduced licensing rules that facilitate crypto, payments, and fintech companies to operate under national bank charters. The dispute centers on concerns that these regulatory changes could potentially jeopardize American consumers as well as the broader financial system.
The Bank Policy Institute (BPI) — a major industry group representing about 40 of the biggest US lenders, including JPMorgan Chase, Goldman Sachs, and Citigroup — is understood to be considering its legal options following the Office of the Comptroller of the Currency’s (OCC) decision to reinterpret federal licensing rules for national banks.
Under the stewardship of Jonathan Gould, a former crypto executive appointed by former President Donald Trump, the OCC has streamlined the process for crypto and fintech startups to obtain national bank trust charters. This move effectively allows such companies to operate across all 50 states under a uniform regulatory umbrella. However, traditional banking institutions argue that granting licenses to these firms without subjecting them to the same stringent regulatory oversight as established banks creates risks for financial stability and consumer protections.
Industry insiders and banking groups have repeatedly warned the OCC about the risks of loosening regulatory standards in this way, but their concerns have so far been disregarded. The BPI previously called on the OCC to reject applications for national trust charters from prominent crypto companies such as Circle and Ripple, as well as British payments firm Wise. The banking lobby group cautioned that permitting firms to offer bank-like products under a lighter regulatory framework blurs the fundamental legal distinctions between banks and other financial entities, thereby increasing systemic risk.
The BPI’s board includes notable banking leaders such as JPMorgan CEO Jamie Dimon, Bank of America’s Brian Moynihan, and Goldman Sachs’ David Solomon. The group has expressed fears that the OCC’s regulatory reinterpretation could diminish the credibility of the national banking charter and expose the financial system to weaknesses.
Legal action against the OCC would mark a significant escalation but is not without precedent. In late 2024, the BPI sued the Federal Reserve over revisions to stress-testing rules — a lawsuit which eventually led to adjustments by the Fed. At present, the BPI has not made a definitive decision on whether to pursue legal proceedings against the OCC, and the organization declined to comment on potential litigation.
The OCC’s pro-crypto licensing agenda has also met resistance from other quarters. The Conference of State Bank Supervisors (CSBS), representing regulators from all states, issued a letter last month warning that extending regulatory approval to crypto and payments firms that fall outside traditional federal banking laws could undermine key principles like competition, consumer protection, and financial stability. Similarly, the Independent Community Bankers of America (ICBA), which advocates for roughly 5,000 smaller lenders, criticized the OCC’s proposals for potentially creating “a significant loophole” in banking regulation that raises "critical public policy concerns."
Beyond regulatory implications, observers note that the OCC’s policies align with the broader ideological push of the Trump administration to integrate crypto and fringe financial firms into mainstream banking. Notably, Trump’s own family-run cryptocurrency business, World Liberty Financial, applied for one of the OCC’s national trust bank charters earlier this year, a move that sparked opposition in Congress amid concerns over conflicts of interest.
Requests for comment from the OCC on these developments went unanswered at the time of reporting.
As the debate unfolds, it highlights the ongoing tensions between traditional financial institutions, emerging fintech firms, and regulators attempting to adapt oversight in a rapidly evolving financial landscape.
Related Topics: Banking, Cryptocurrencies, Trump Administration, JP Morgan, Goldman Sachs, Citigroup, US Economy
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