U.S. Banks Consider Legal Action Against OCC Over Licensing Rules

An industry group representing 40 major U.S. banks, including JPMorgan Chase, Goldman Sachs, and Citigroup, is contemplating a lawsuit against the Office of the Comptroller of the Currency (OCC). According to Foresight News, the Banking Policy Institute (BPI) is concerned about OCC head Jonathan Gould, appointed by U.S. President Donald Trump, who is reinterpreting federal licensing rules to facilitate the acquisition of national bank trust licenses by cryptocurrency companies and fintech startups. This change would allow these companies to operate across all 50 states, potentially entering the U.S. financial system without stringent regulation and oversight, which BPI argues could threaten consumer protection and financial system stability. In October, BPI urged the OCC to reject license applications from Circle, Ripple, and payment company Wise. Additionally, World Liberty Financial, a cryptocurrency enterprise run by the Trump family, applied for such a license in January. The Conference of State Bank Supervisors (CSBS), representing regulators from all 50 states, and the Independent Community Bankers of America (ICBA), representing 5,000 small banks, have also expressed strong opposition to the OCC's policy.