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ICBA Urges OCC to Reject Coinbase Trust Charter Following Formal Letter

The OCC review remains months away, with Coinbase seeking a national trust charter for institutional custody and settlement.

Overview

  • Independent Community Bankers of America asked the OCC to deny Coinbase’s application or expand disclosure and hold a public hearing.
  • ICBA’s filing argues the proposed trust could be unprofitable in downturns, hard to unwind safely, and reliant on flawed risk and control functions.
  • Coinbase’s legal chief Paul Grewal publicly countered that bank lobbyists are trying to block regulated options to protect their own interests.
  • Coinbase applied for a national trust company charter to streamline state-by-state compliance and support custody, payments, and settlements, and it says it is not seeking to become a full-service bank.
  • The OCC’s decision is still pending and could take 12–18 months, as broader bank groups such as the Bank Policy Institute oppose similar charters for other crypto firms.