Coinbase and Paradigm Say Banks Are Trying to Block Stablecoin Innovation

Leaders from Coinbase and Paradigm have publicly accused powerful US banking groups of employing protectionist policies to stifle innovation in the cryptocurrency and stablecoin sectors. Coinbase's Chief Legal Officer, Paul Grewal, criticized the Independent Community Bankers of America (ICBA) for opposing Coinbase's application for a trust bank charter, viewing it as an attempt to create regulatory moats. Coinbase's Chief Policy Officer, Faryar Shirzad, connected this opposition to the broader stablecoin debate, advocating for the GENIUS Act to establish clear rules for dollar-backed stablecoins under OCC supervision. Meanwhile, Paradigm's VP of Government Affairs, Alexander Grieve, accused the Bank Policy Institute (BPI) of using "bad-faith" arguments, suggesting an "if you can't beat them, destroy them" approach against stablecoins. These banking groups, like BPI, counter by warning that integrating stablecoins without safeguards risks financial stability by allowing crypto shocks to infect the broader economy. The outcome of the OCC's decision on Coinbase's charter and the fate of the GENIUS Act are expected to significantly shape future US financial regulation.

(Source：BeInCrypto)