Banks are challenging crypto’s federal charter pathway as Tom Lee backs a bullish $10,000 Ethereum call.
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Key Takeaways
ICBA is suing the OCC over its national trust bank charter framework.
The complaint specifically challenges Protego’s approval.
Citi’s Bitcoin bull case exceeds $150,000, while Tom Lee backs a $10,000 Ethereum call.
America’s community banking lobby is taking its fight against crypto’s expansion into banking to federal court, even as Tom Lee backs a bullish post predicting Ethereum will reach $10,000.
The Independent Community Bankers of America’s lawsuit challenges the federal charter framework supporting crypto companies’ entry into banking, with potential implications for firms such as Coinbase and Circle.
The challenge follows the CLARITY Act’s failure in the Senate, shifting attention to federal regulators as the industry seeks clearer rules.
Meanwhile, Lee remains extremely bullish on Ethereum.
On Oct. 5, the Fundstrat co-founder backed a post arguing that investors waiting for another price drop would miss a rally to $10,000 coming soon.
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The Independent Community Bankers of America filed its lawsuit against the Office of the Comptroller of the Currency and Comptroller Jonathan Gould on Oct. 2 in federal court in Washington, D.C.
The complaint challenges the OCC’s March 2026 chartering rule and its 2021 Interpretive Letter 1176.
ICBA argues that these policies unlawfully permit national trust banks to engage in activities beyond traditional fiduciary services.
The group wants both policies set aside and seeks to overturn the approval of Protego’s charter.
ICBA President and CEO Rebeca Romero Rainey said the OCC’s approach “exceeds the authority Congress granted the agency.”
The banking group argued that crypto businesses can enter the banking system without facing the same regulatory requirements as community banks.
Why the Lawsuit Matters Beyond Protego
The lawsuit challenges the rules underpinning crypto companies’ access to national trust bank charters, potentially extending its impact beyond Protego.
The legal challenge builds on ICBA’s earlier campaign against Coinbase.
In a Nov. 3, 2025, letter, the banking group urged the OCC to reject Coinbase National Trust Company’s application, arguing that its proposed activities relied on the same interpretive letter now being challenged in court.
ICBA also questioned Coinbase’s proposed oversight structure and warned that custody revenues could weaken during crypto downturns.
Coinbase and Circle are not defendants in the lawsuit.
However, a decision striking down the OCC’s policies could constrain the regulator’s ability to approve similar crypto trust charters.
CLARITY’s Defeat Raises the Stakes
On Sept. 15, senators rejected the motion to proceed to the CLARITY Act by 49–50.
The bill sought to establish a framework dividing oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Without that legislation, agency decisions have taken on greater importance for companies seeking clearer operating rules and wider institutional adoption.
However, that approach has brought its own uncertainty.
The Wall Street Journal reported that regulatory frameworks can be more vulnerable to changes in administration than federal laws.
ICBA’s lawsuit highlights another legal battle over how far federal agencies can go in opening the financial system to crypto companies.
Tom Lee Backs $10K Ethereum as Citi Eyes $150K Bitcoin
Tom Lee has doubled down on an aggressive forecast that Ethereum could reach $10,000.
In an Oct. 5 post on X, Lee wrote “Agree on $ETH” while sharing commentary from Ethereum Maxis.
The original post, published Oct. 4, argued that investors waiting for cheaper entry prices would remain on the sidelines as Ethereum climbed to $10,000.
Tom Lee is backing bullish posts | Source: X (@fundstrat)
Bitcoin forecasts remain ambitious too.
Citi recently raised its 12-month base-case target to $113,000 from $82,000, with a bull scenario above $150,000 and a bear scenario of $43,000.
According to MarketWatch, its strategists cited stronger activity and a bullish catalyst of SEC rule announcements following the CLARITY Act’s failure.
The analysts suggested that the setback did not eliminate prospects for regulatory progress.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
