The Bank Policy Institute believes crypto poses a risk to the financial system
The Bank Policy Institute (BPI), a US trade group representing major banks, is reportedly considering legal action against the Office of the Comptroller of the Currency (OCC) over its crypto policies. BPI officials are concerned that granting crypto firms national trust bank charters could pose risks to both consumers and the broader financial system.
Since December, the OCC has issued conditional approvals to several crypto companies, including BitGo, Ripple, Paxos, Fidelity Digital Assets, and Crypto.com. Other firms, such as Zerohash and Bridge, have submitted applications or received conditional licenses in early 2026. These charters allow companies to operate under federal trust banking rules, offering fiduciary services like custody, asset safekeeping, and trust operations.
BPI members include large US banks such as Goldman Sachs, JPMorgan, and American Express. The trade group has previously warned that permitting crypto firms to hold national trust bank charters could reduce oversight compared with full-service national banks. In October 2025, BPI urged the OCC to reject charter applications from Ripple and Circle, highlighting potential gaps in regulatory supervision.
Legal action is not yet finalized. BPI has been weighing its options after the OCC continued to approve crypto charters despite warnings from banking groups. The Guardian reports that the trade group is carefully assessing the potential impact on the financial system and consumer protections before moving forward.
This potential lawsuit follows a history of BPI challenging federal regulatory decisions. In late 2024, the group joined other banks in suing the Federal Reserve over stress-testing rules. That case was paused after the Fed agreed to review certain aspects of the framework. Any legal challenge to the OCC would mark another attempt by BPI to influence how digital asset firms are regulated within the US banking system.
The situation highlights growing tension between traditional banks and the crypto industry as regulators expand access to federal charters. The outcome of BPI’s deliberations could shape the future of crypto integration in regulated banking in the United States.
