Leading US banks are considering legal action against federal regulators over new licensing rules that could allow cryptocurrency and fintech companies to operate within the national banking system under lighter regulatory oversight.
The Bank Policy Institute, an industry group representing 40 major lenders including JPMorgan Chase, Goldman Sachs and Citigroup, is reportedly evaluating whether to sue the Office of the Comptroller of the Currency (OCC). The dispute centres on the regulator’s reinterpretation of federal licensing rules that makes it easier for crypto and fintech firms to obtain national bank trust charters, allowing them to offer financial services across all 50 US states.
Banking groups argue that granting such licences risks introducing companies into the financial system without the same supervisory requirements applied to traditional banks. They warn that allowing firms to deliver bank-like services under less stringent regulation could expose consumers and the broader financial system to greater risk.
The OCC, led by comptroller Jonathan Gould, has promoted the licensing approach as part of a broader policy direction encouraging greater integration of cryptocurrency and emerging financial technology companies into mainstream financial markets. The regulator’s position aligns with a wider push by the Trump administration to support digital asset innovation and expand access for fintech companies within the US financial system.
Several high-profile applications have already drawn scrutiny. The Bank Policy Institute previously urged the OCC to reject national trust charter applications submitted by cryptocurrency and blockchain companies including Circle and Ripple, as well as London-based payments firm Wise. Banking groups argue that such approvals could blur the legal distinction between regulated banks and financial technology firms operating under lighter frameworks.
The issue has also generated concern among smaller lenders and state regulators. The Conference of State Bank Supervisors warned that allowing companies to operate outside core federal banking laws while providing banking-style services could undermine consumer protection, weaken competition and threaten financial stability. The Independent Community Bankers of America has similarly argued that the proposed licensing structure could create regulatory loopholes.
The Bank Policy Institute has not yet confirmed whether it will pursue legal proceedings. However, the possibility of litigation reflects mounting tensions between established banks and regulators over how digital asset firms should be integrated into the US financial system.
