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Tuesday Nov 4 2025 21:50
2 min
The Independent Community Bankers of America (ICBA) has voiced strong opposition to Coinbase's application for a National Trust Company Charter in the United States. This move comes as Coinbase aims to bridge the gap between traditional finance and cryptocurrency, potentially challenging established banking interests.
In a letter to the US Office of the Comptroller of the Currency (OCC), the ICBA expressed concerns about the "untested" aspects related to crypto custody. They also suggested that Coinbase might struggle to maintain profitability during cryptocurrency market downturns. The ICBA argues that granting Coinbase a National Trust Charter could set a dangerous precedent.
Coinbase's chief legal officer, Paul Grewal, responded to the ICBA's opposition via a post on X, characterizing it as an attempt by bank lobbyists to protect their own interests. He argued that obtaining a regulated charter is a positive step toward integrating cryptocurrency into the broader financial system.
In addition to Coinbase, other cryptocurrency companies like Ripple Labs and Circle have also applied for national bank charters. These moves follow legislation aimed at establishing a framework for payment stablecoins.
The ICBA's reaction exemplifies the ongoing tension between traditional financial institutions and the emerging cryptocurrency sector. The OCC's decision on Coinbase's application, and others like it, will signal the future direction of cryptocurrency regulation in the United States.
The OCC is currently reviewing Coinbase's application, with a decision expected in 12 to 18 months. In the meantime, the industry will closely watch to see whether regulators prioritize traditional banking conservatism or embrace financial innovation.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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