OCC grants Coinbase conditional trust bank charter amid ICBA opposition
OCC grants Coinbase conditional trust bank charter. If finalized, Coinbase can expand from custody into payments under federal oversight.
Coinbase says the charter would enable a broader US payments and infrastructure suite. “Over the long haul we will be able to explore… other infrastructure products, particularly around payments,” said CLO Paul Grewal in a CNBC interview.
Community banks pushed back. The ICBA sent a letter opposing the conditional approval for Coinbase National Trust Co., calling it “a grave mistake” for consumers. The group cited legal and risk gaps in the filing and urged the OCC to reverse course, per the ICBA letter and media coverage.
ICBA alleges the application shows:
- Inadequate risk controls
- Unclear profitability prospects
- Unresolved resolution risks
The trade group also challenges the OCC rule allowing uninsured national trust banks to conduct non‑fiduciary crypto-related business outside the Bank Holding Company Act and prudential standards for FDIC‑insured banks. It asks the OCC to withdraw or revise the rule to align with statutory authority, per the letter.
ICBA warns an influx of charter applications from non‑bank firms suggests they seek federal charter benefits without full bank safeguards, which could weaken consumer protection and financial stability.
