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

The Independent Community Bankers of America (ICBA), a significant U.S. bank lobbying group representing thousands of smaller institutions, formally petitioned the Office of the Comptroller of the Currency (OCC) to deny Coinbase's application for a trust bank charter. The ICBA argued that Coinbase's plan fails on multiple grounds, including concerns that the proposed trust would struggle to remain profitable in a bear market, that the OCC would face difficulties dissolving it if it failed, and that its risk controls are flawed. This opposition follows similar objections raised by the Bank Policy Institute (BPI) against other crypto firms like Ripple and Circle. Coinbase sought the charter to expand services like payments and settlements without needing separate state approvals, though it stated it does not intend to become a full-service bank. The ICBA also requested the OCC deny the application or, alternatively, hold a public hearing to examine the materials.

(Source：CoinDesk)