The Office of the Comptroller of the Currency (OCC) published Interpretive Letter 1192 on May 12, 2026. The Letter responds to a request by Fidelity Digital Assets for confirmation that the National Bank Act (NBA) preempts Iowa's money transmitter licensing law as applied to Fidelity Digital Assets' operations as a national trust bank.
The OCC grounded its analysis in the Barnett Bank standard: a state law is preempted when it prevents or materially obstructs a national bank's exercise of its federally authorized powers. The OCC characterized its conclusion as 'clear and unambiguous under applicable law and longstanding precedent.' IL 1192 holds that any state law requiring a national bank to obtain a state money transmitter license as a condition of engaging in authorized activities prevents the bank from exercising its federal powers and is therefore preempted. The Letter further holds that any state money transmitter law purporting to vest a state with visitorial authority over a national bank is fundamentally inconsistent with 12 U.S.C. section 484 and is impermissible.
National banks and national trust banks conducting digital asset activities in states that impose money transmitter licensing requirements may rely on IL 1192 as OCC confirmation that those state licensing requirements are preempted. State-chartered trust companies, non-bank custodians, and state-licensed money transmitters engaged in similar activities do not benefit from NBA preemption and remain subject to state licensing requirements. Fidelity Digital Assets, which converted from a state-chartered entity to a national trust bank in December 2025, benefits directly from the Letter's conclusions.
IL 1192 does not address federal requirements under the Bank Secrecy Act or FinCEN money services business registration, which continue to apply to national banks engaged in qualifying activities. The OCC's preemption position may face challenge from state attorneys general or through federal litigation; the Barnett standard has been contested in other regulatory contexts. The Letter's conclusions are tied to the specific factual posture of Fidelity Digital Assets as a national trust bank and may be treated as narrow by state regulators seeking to enforce licensing requirements against other entities.
Licentium advises financial institutions and digital asset businesses on federal and state licensing strategy. We maintain a partner network covering U.S. banking regulatory matters. Contact us to discuss how IL 1192 affects your licensing obligations or charter strategy. Work we undertake includes national bank charter analysis, money transmitter licensing review, preemption analysis, digital asset custody compliance, and regulatory positioning for entities converting between state and federal charters.
Source: OCC Interpretive Letter 1192, Office of the Comptroller of the Currency, May 12, 2026