US National Bank Charter Fuels Dispute Over Regulatory Reach and Dual Banking System

The National Bank Act of 1863 established the US federal chartering system, under which the Office of the Comptroller of the Currency oversees national banks alongside state regulators supervising state-chartered institutions. This dual banking structure, in place for more than 160 years, lets banks choose their regulatory system. The dispute centers on whether the OCC is expanding federal preemption at the expense of state consumer protections and local accountability.

On June 25, 2026, Conference of State Bank Supervisors CEO Brandon Milhorn rebutted former OCC comptrollers Eugene Ludwig and John Dugan in American Banker. The CSBS said the OCC had received 60 applications over the previous 18 months: 12 for new banks, 26 for national trust banks and 22 for charter conversions. It said the real issue was whether the OCC was using federal preemption to exclude state law.