Community banks sue US regulator over crypto firm charters

By Pete Schroeder

WASHINGTON, Oct 2 (Reuters) - A trade organization representing community banks sued a US bank regulator Friday, claiming that its decision to grant limited bank charters to firms that primarily engage in crypto products exceeds its regulatory authority.

The Independent Community Bankers of America filed the suit in the US District Court for the District of Columbia, saying the Office of the Comptroller of the Currency must revoke a recent rule and related guidance smoothing the way for crypto firms to apply for national trust bank charters. The group argued granting such charters to crypto firms grants legitimacy but without sufficient safeguards.