{"id":17689,"date":"2025-11-05T02:36:31","date_gmt":"2025-11-05T01:36:31","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17689"},"modified":"2025-11-05T02:36:31","modified_gmt":"2025-11-05T01:36:31","slug":"banks-resistance-to-crypto-charter-applications-draws-criticism-from-coinbase-executive","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/05\/banks-resistance-to-crypto-charter-applications-draws-criticism-from-coinbase-executive\/","title":{"rendered":"Banks’ Resistance to Crypto Charter Applications Draws Criticism from Coinbase Executive"},"content":{"rendered":"

“`html
\n<\/p>\n

\n

The Independent Community Bankers of America (ICBA) is expressing opposition to cryptocurrency exchange Coinbase\u2019s pursuit of a National Trust Company Charter in the US \u2014 a step that might jeopardize banks\u2019 interests as the firm inches closer to conventional finance.<\/p>\n

In a Monday correspondence to the US Office of the Comptroller of the Currency (OCC) \u2014 the agency tasked with approving banking applications \u2014 the ICBA stated<\/a> it \u201cvehemently opposes\u201d Coinbase\u2019s subsidiary seeking a trust charter. The correspondence highlighted \u201cunproven\u201d aspects linked to crypto custody, as well as assertions that Coinbase\u2019s branch would \u201cfind it challenging to attain and sustain profitability during crypto downturns.\u201d<\/p>\n

\u201cPicture opposing a regulated trust charter because you wish crypto to remain\u2026 unchecked,\u201d remarked<\/a> Coinbase chief legal officer Paul Grewal in a Tuesday post on X. \u201cThat\u2019s ICBA\u2019s stance. It\u2019s yet another instance of banking lobbyists attempting to construct regulatory barriers to safeguard their own interests.\u201d<\/p>\n

Source: <\/em>Paul Grewal<\/em><\/a><\/figcaption><\/figure>\n

Coinbase submitted an application for a national trust charter<\/a> in October as part of its initiative to \u201cclose the divide between the crypto economy and the traditional financial framework.\u201d Reports indicated that the OCC could take anywhere from 12 to 18 months to assess the crypto exchange\u2019s\u00a0application.<\/p>\n

Related: <\/strong><\/em>Nordic bank that previously distanced itself from crypto to soon introduce a Bitcoin ETP<\/strong><\/em><\/a><\/p>\n

The ICBA correspondence urged the OCC to reject Coinbase\u2019s application, or, as an alternative, permit additional time for public scrutiny of the company\u2019s business blueprint and the \u201clegal, prudential, and public interest ramifications.\u201d<\/p>\n

Cointelegraph reached out to the OCC for feedback, but had not received a reply by the time of publication.<\/p>\n

Crypto firms await updates from US regulators<\/h2>\n

Though Coinbase asserted it had \u201cno plans to transform into a bank\u201d via its application with the OCC, other crypto enterprises, like Ripple Labs and Circle, have requested national bank charters<\/a>. These actions were prompted by the US government enacting legislation to establish a framework for payment stablecoins \u2014 both Ripple and Circle have launched their stablecoins, Ripple USD (RLUSD<\/a>) and USDC (USDC<\/a>).<\/p>\n