The US-based cryptocurrency exchange applied for a national trust charter in October as part of its plans to “bridge the gap“ with traditional finance.
The Independent Community Bankers of America (ICBA) is coming out against cryptocurrency exchange Coinbase’s application for a National Trust Company Charter in the US — a move that could threaten banks’ interests as the company moves closer to traditional finance.
In a Monday letter to the US Office of the Comptroller of the Currency (OCC) — the office responsible for approving banking applications — the ICBA said it “strongly opposes” Coinbase’s subsidiary applying for a trust charter. The letter cited “untested” elements related to crypto custody, as well as claims that Coinbase’s arm would “struggle to achieve and maintain profitability during crypto bear markets.”
“Imagine opposing a regulated trust charter because you prefer crypto to stay… unregulated,” said Coinbase chief legal officer Paul Grewal in a Tuesday X post. “That’s ICBA’s position. It’s another case of bank lobbyists trying to dig regulatory moats to protect their own.”
