Why these community banks are suing the OCC over crypto trust charters

Yay, we're getting sued again.

Community Banks sue US regulator over crypto firm charter. So, to be clear, we as the crypto industry are not getting sued. It's just uh people suing the United States government because they talk about or even mention crypto. This is

a furthering of the clarity act fight that we saw before and the community banks could not be more confused right now. Right? Uh, watch what they do, not what they say. They're all over the map, but the independent community bankers of America

are suing the OCC, arguing that the OCC exceeded its authority by granting national Trust Bank charters to crypto companies that are conducting custody, trading, lending and issuance.

So, their argument is that these trust banks, uh, generally do not accept conventional deposits, so they do not operate with FDIC insurance. But I ask you, as the

as the crypto companies quickly pointed out, if they're not accepting deposits, why why do they need insurance on deposits?

so dumb.

So dumb.

So basically, what the community banks here are arguing is that there's some preferential treatment for crypto companies who are getting these very skinny limited trust bank, even though they're not offering full banking services. But the reality is that the community banks have shown

that they are extremely fearful of the crypto industry. By the way, they should just actually be extremely fearful of Goldman Sachs and JP Morgan and Morgan Stanley and Wells Fargo and Bank of America and all the biggest banks who actually are causing all the deposit flight from community banks. But we can leave that for another day.

Very fearful of what the crypto industry can do if they get banking charters and become more a large part of the financial system. So, these same banks helped derail clarity because of their concerns that stable coins and rewards can drain deposits, and now they're suing when those very crypto companies want to actually become banks and to do it in a compliant

manner.

But you'll remember, these same community banks also are launching their own stable stable coin network.

Remember that bank coin?

Sounds like something from Mr. Robot.

So, yes, the the reality here is much like with every institution outside of crypto, they're going to adopt it. They're just trying to slow it down and stop the industry itself from capitalizing before they can get their little piece.