Rain has applied for a US trust bank charter, joining other cryptocurrency firms pursuing federal banking credentials. The application arrives days after community banks filed a lawsuit challenging the Office of the Comptroller of the Currency's authority to issue crypto-related bank charters.
Rain's move reflects broader industry momentum toward obtaining traditional banking licenses. Multiple crypto companies have pursued similar federal trust charters in recent months, seeking regulatory legitimacy and expanded financial services capabilities.
The timing underscores tension between crypto firms pushing for banking access and established financial institutions resisting the regulatory framework. Community banks argue the OCC lacks authority to approve charters for cryptocurrency-focused operations. They filed suit to overturn the OCC rules that enable such approvals.
The OCC established guidelines permitting national banks and federal savings associations to provide cryptocurrency services. These rules created a pathway for crypto firms to obtain trust charters without establishing full bank charters. Trust charters typically grant narrower authorities than commercial banking licenses, focusing on custody and trust functions rather than deposit-taking.
Rain joins companies including Kraken, Anchorage, and others in seeking this regulatory designation. A trust charter would allow Rain to custody digital assets and provide trust services under federal oversight rather than navigating state-by-state licensing regimes.
The legal challenge from community banks represents organized opposition to OCC cryptocurrency guidance. Community bankers have contested whether the regulator properly interpreted its statutory authority to approve such charters. The lawsuit tests whether existing banking law contemplates crypto-focused operations.
The outcome carries implications for the entire sector. If courts overturn OCC rules, pending applications like Rain's could face delays or rejection. Conversely, OCC victory would solidify the pathway crypto firms have pursued.
Rain's application demonstrates crypto industry confidence in eventual regulatory clarity, even amid legal uncertainty. The company appears willing to proceed despite the pending litigation, suggesting faith that federal trust charters remain viable.