U.S. Bank Lobbyists Urge OCC to Reject Coinbase's Trust Charter Application

U.S. Bank Lobbyists Move to Block Coinbase's National Trust Charter The crypto industry's relationship with traditional finance continues to be strained, as a leading U.S. banking group has now urged federal regulators to reject Coinbase's application for a national trust charter. The Independent Community Bankers of America (ICBA) submitted a scathing letter to the Office of the Comptroller of the Currency (OCC), arguing that Coinbase's proposed trust bank fails to meet multiple legal requirements and poses significant risks to financial stability. This latest development escalates the ongoing tensions between the established banking sector and the burgeoning cryptocurrency market. The ICBA, which represents thousands of community banks across the country, claims that Coinbase's trust charter application does not satisfy statutory criteria and could threaten the integrity of the wider financial system. Coinbase, one of the largest and most prominent cryptocurrency exchanges, has been seeking to obtain a national trust charter from the OCC. This would allow the platform to expand its services and bridge the gap between digital assets and traditional banking. However, the ICBA's intervention suggests that the traditional banking industry is determined to thwart Coinbase's ambitions and maintain its dominance. The letter's negative tone and dire warnings underscore the banking sector's growing unease over the rapid growth of cryptocurrencies and the perceived threats they pose to established financial institutions. As the crypto industry continues to gain mainstream adoption, this clash between old and new finance is likely to intensify, with significant implications for investors, entrepreneurs, and policymakers in the months and years ahead.