The American banking industry plans to sue the OCC in protest of the easing of bank license issuance for cryptocurrency companies

According to The Guardian, the Bank Policy Institute (BPI), an industry organization representing 40 major U.S. banks including JPMorgan Chase, Goldman Sachs, and Citigroup, is weighing a lawsuit against the Office of the Comptroller of the Currency (OCC).

The BPI points out that OCC Director Jonathan Gould, appointed by Trump, is reinterpreting federal licensing rules to make it easier for cryptocurrency companies and fintech startups to obtain a "national bank trust charter," allowing them to operate in all 50 states.

The BPI believes that this move allows these companies to enter the U.S. financial system without strict oversight and controls, potentially jeopardizing consumer and financial system stability. The organization had urged the OCC in October to reject license applications from Circle, Ripple, and payment company Wise.

Additionally, the cryptocurrency firm World Liberty Financial, operated by the Trump family, applied for such a license in January of this year. Currently, the CSBS, representing regulators from all 50 states, and the ICBA, representing 5,000 small banks, have also expressed strong opposition to the OCC's policy.