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first_img The Bank of America group sued the OCC, accusing it of overstepping its authority by issuing trust licenses to cryptocurrency companies

The Independent Community Bankers of America (ICBA) filed a lawsuit against the Office of the Comptroller of the Currency (OCC) in federal court on Friday, accusing it of exceeding its statutory authority when issuing national trust bank charters to cryptocurrency companies. The ICBA stated that the OCC is implementing "broad new powers not authorized by the National Bank Act," allowing these companies to enter the U.S. banking system without being subject to the same level of regulatory oversight as community banks, putting small banks at a "serious competitive disadvantage."The ICBA is one of the largest banking advocacy organizations in the United States, primarily representing small institutions. Last month, the organization strongly opposed the Digital Asset Market Structure Bill, which failed to advance in the U.S. Senate, arguing that its stablecoin provisions did not protect community banks from direct competition for deposit accounts. ICBA President and CEO Rebeca Romero Rainey stated that Congress did not establish the national trust charter to provide a "backdoor" for cryptocurrency companies seeking to enter the banking system with the credibility of a federal bank charter, as these companies do not bear the same obligations regarding capital, liquidity, regulation, and Federal Deposit Insurance Corporation (FDIC) insurance requirements. An OCC spokesperson responded to CoinDesk that the agency does not comment on ongoing litigation.Recently, the OCC has continued to issue trust charters to cryptocurrency companies, but these companies' business models differ from those of typical community banks and do not offer cash deposit accounts that require FDIC insurance. Approved institutions include cryptocurrency banks Protego and Erebor, as well as existing cryptocurrency firms like Coinbase, Circle, and Crypto.com.

first_img Absa Bank in South Africa becomes the first bank in Africa to offer Bitcoin custody

According to Bloomberg, Absa Bank in Johannesburg, South Africa, has become the first bank in Africa to offer Bitcoin custody services, primarily targeting institutional clients, and will also provide custody services for other digital assets. Rob Downes, the head of digital assets at Absa's Corporate and Investment Banking division, stated that Bitcoin is the largest asset under custody at the bank, with plans to include more asset classes in the future. Absa did not immediately respond to Bitcoin Magazine's request for comment.Many banks around the world are gradually integrating or launching Bitcoin-related products and services. Some banks in the United States and Europe have begun offering crypto asset custody for institutional clients. In 2022, BNY Mellon became the first large bank in the United States to offer digital asset custody services; this month, Deutsche Bank announced plans to launch Bitcoin custody services for European businesses and institutional clients later in 2026.Africa has a large base of crypto-native users. A report by Chainalysis in 2025 shows that South Africa's on-chain value reached $36 billion, ranking second in Sub-Saharan Africa, only behind Nigeria's $92.1 billion; South Africa ranks 30th in the global crypto adoption index. Unlike Nigeria, the South African market is characterized by more institutional features, with a relatively clear regulatory framework that has issued hundreds of licenses to virtual asset service providers, attracting professional investors and traditional financial institutions.
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