Coinbase Faces Bank Opposition Over Trust Charter

Coinbase Faces Pushback Over Trust Charter From Banking Group

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 05, 2025

Key Takeaways

Coinbase is seeking a federal trust charter to offer regulated crypto services, but the ICBA is urging regulators to block or delay the process;
The ICBA argues Coinbase's crypto trust proposal is risky and unproven, especially during downturns in the digital asset market;
Coinbase responded by accusing traditional banks of trying to block competition through regulatory resistance.

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Coinbase $4.63B has responded to criticism from a major US banking group that is trying to stop the company’s efforts to gain a federal trust charter.

In a letter sent on November 3 to the Office of the Comptroller of the Currency (OCC), the Independent Community Bankers of America (ICBA) stated that it is firmly against Coinbase’s application.

The ICBA argued that Coinbase’s proposed trust company is based on crypto-related services that are still new and not well tested. They also said it might struggle to stay financially stable if the crypto market continues to decline.

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In its letter, the ICBA urged the OCC to either reject the application or allow more time for the public to review and comment on the plan.

Coinbase applied for the National Trust Charter in October. Although this would bring Coinbase under closer supervision by US regulators, the company clarified that it is not trying to become a bank.

Instead, the trust charter would let it offer services like crypto custody within a clearer legal framework.

Paul Grewal, Coinbase’s chief legal officer, criticized the ICBA’s position on November 4 through a post on X. He said it was unreasonable to oppose a regulated charter to keep crypto outside of formal rules.

He described the ICBA’s actions as an attempt by traditional banks to protect their interests by keeping newer companies out.

On October 29, Coinbase's head of policy, Faryar Shirzad, pushed back against the idea that stablecoins pose a major risk to US banks. What did he say? Read the full story.