Coinbase Faces Flak From Traditional Bankers on Its Push for Trust Bank Charter

Why It Matters

The dispute underscores growing regulatory friction between traditional banking lobbyists and crypto firms, potentially delaying Coinbase’s expansion into banking services and setting a precedent for future crypto‑bank charter approvals.

Summary

Coinbase’s request for a U.S. federal trust charter has been met with a formal objection from the Independent Community Bankers of America, which argues the exchange fails multiple statutory standards, lacks sound risk controls and may not be profitable in a bear market. The objection, filed with the Office of the Comptroller of the Currency, echoes a similar pushback last week from the Bank Policy Institute against trust applications from other crypto‑linked firms such as Ripple, Circle and Paxos. The OCC, now led by a comptroller appointed by a pro‑crypto administration, must weigh these banking‑sector concerns as Coinbase seeks the charter to streamline payments, settlements and reduce the need for 50 separate state licenses. Coinbase has not responded to the filing, and the OCC has not yet indicated a decision timeline.