Rain seeks US trust bank charter days after OCC sued over crypto charters
Rain joins a growing queue of crypto firms seeking federal trust charters, while community banks have just asked a court to overturn the OCC rules underpinning them.
Rain, a stablecoin payments infrastructure provider, has filed an application with the Office of the Comptroller of the Currency (OCC) to establish a national trust bank in New York, joining a growing number of crypto firms pursuing federal trust charters in recent months. The proposed Rain National Trust Bank would be able to provide fiduciary custody of digital assets and US dollars for institutional clients, offer reserve management for permitted stablecoin issuers, and issue and redeem dollar-backed stablecoins in accordance with the GENIUS Act.
However, community banks have filed a lawsuit against the OCC, alleging that the regulator exceeded its authority by allowing non-depository trust banks to conduct extensive non-fiduciary activities, and argue that the OCC's National Bank Chartering final rule and an interpretive letter from 2021 have given crypto trust banks a competitive advantage by allowing them to offer services that overlap with community banks without facing the same regulatory obligations.
Brief written by urgent.news from Cointelegraph's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
