Overview
- Community banks’ trade group ICBA filed a letter urging the OCC to deny Coinbase National Trust Company’s application, saying it fails on multiple independent grounds under chartering standards.
- ICBA cited bear‑market profitability risks, questioned Coinbase’s governance and risk controls, and warned the OCC’s untested receivership framework could struggle with a large uninsured crypto custodian.
- The letter also challenged the legal basis for approval by arguing OCC Interpretive Letter 1176 lacked required Administrative Procedure Act procedures and cannot justify non‑fiduciary activities.
- Coinbase chief legal officer Paul Grewal condemned the lobbying push as protectionism, arguing a regulated trust charter would bring crypto custody under supervision rather than avoid it.
- OCC review remains underway and can take 12–18 months; BPI has pressed for similar scrutiny of other applicants, and Anchorage Digital remains the sole crypto firm previously granted an OCC trust charter.