Banking and Finance Law Daily Wrap Up, BANKING OPERATIONS—NCRC urges OCC to reject Zerohash charter over managerial competence questions, (Sep 29, 2026)

By Lauren Bikoff, MLS

The proposed bank’s president/chief operating officer and chief trust officer positions remain vacant, although the application says they will be filled before operations begin.

The National Community Reinvestment Coalition (NCRC) urged the Office of the Comptroller of the Currency (OCC) to reject Zerohash National Trust Bank’s (ZNTB) charter application and conduct further fact-finding into the applicant’s managerial competence. In a September 16 comment letter, NCRC pointed to overlapping parent-bank leadership roles, two unfilled senior positions, and compliance-culture concerns raised by allegations in a former chief compliance officer’s California lawsuit.

Background. ZNTB first filed a charter application with the OCC on Feb. 27, 2026. After objections to the proposed bank, the OCC returned ZNTB’s petition on July 17, 2026. On Aug. 18, 2026, ZNTB resubmitted an application seeking to charter a de novo national trust bank headquartered in Asheville, North Carolina. The company seeks approval for an institution that would not seek Federal Deposit Insurance Corporation deposit insurance and would only offer electronic products, including custody of digital assets and fiat currency; custodial staking and validation; digital asset trade services; and fiduciary settlement, clearing, and escrow services. However, the Independent Community Bankers of America (ICBA) believes that the resubmitted application does not resolve the concerns with the initial application (see Banking and Finance Law Daily, Sept. 21, 2026).

NCRC objections. In addition to the prior concerns cited by the ICBA, NCRC grounded its current objection in OCC charter standards. Specifically, 12 C.F.R. § 5.20(f)(2)(i)(B) requires a national bank to have competent management, including a board with ability and experience relevant to the proposed services. It also cited Section 5.20(g)(2), under which the initial board must select competent senior executive officers before final approval. Because the president/chief operating officer and chief trust officer posts are unfilled, NCRC asked the OCC not to evaluate management until the proposed bank fills them.

The coalition also questioned whether proposed leaders could avoid divided loyalties. The application identifies Stephen Gardner as a proposed bank director and chief executive officer while he would remain Zerohash US, LLC’s co-president and chief legal officer. It identifies Adam Berg as a proposed director and chief financial officer while also serving Zerohash as co-president and chief financial officer. NCRC said the parent and bank likely would be significantly interconnected. It asked the OCC to determine whether officials holding multiple roles could fulfill their fiduciary duties to the proposed bank.

Separately, NCRC asked the OCC to examine Zerohash’s compliance culture in light of a wrongful-termination case filed by its former chief compliance officer. The coalition cautioned that the complaint’s allegations “are just that—allegations.” It nevertheless requested further inquiry, including company documents concerning any longstanding compliance issues, information from the New York Department of Financial Services about any inquiry, and the North Carolina Commissioner of Banks’ assessment of the company’s compliance culture. NCRC also sought information about Gardner’s conduct while serving as Zerohash’s chief compliance officer.

Companies: Independent Community Bankers of America; National Community Reinvestment Coalition; Zerohash National Trust Bank; Zerohash US, LLC

RegulatoryActivity: BankHolding BankingOperations DepositInsurance FinTech NewYorkNews NorthCarolinaNews SecuritiesDerivatives