The Independent Community Bankers of America has opposed the Office of the Comptroller of the Currency’s conditional approval of a national trust bank charter for Coinbase. The group warned the application has deficiencies and that granting it could pose risks. This opposition is part of a wider dispute over stablecoin regulation, which is currently stalling broader crypto market structure legislation in Congress.
The Independent Community Bankers of America has formally opposed the Office of the Comptroller of the Currency‘s (OCC) conditional approval of Coinbase‘s national trust bank charter. ICBA stated Coinbase’s application shows deficiencies in risk controls, profitability and resolution planning. The group argued the OCC lacks the statutory authority to expand trust powers for crypto activities without applying the full scope of banking regulations.
The Americans for Financial Reform Education Fund also criticized the decision, warning it departs from longstanding law and could expose the financial system to crypto market volatility. “The sudden influx of applications demonstrates nonbank entities are seeking the benefits of a US bank charter without satisfying the full scope of US bank regulations,” ICBA wrote.
Coinbase released a statement saying the charter would bring its custody business under federal oversight. The company emphasized it does not plan to hold customer deposits or engage in fractional reserve lending.
The opposition is part of a broader dispute between banking groups and crypto companies over digital assets. Bank of America CEO Brian Moynihan warned in January that allowing stablecoin issuers to offer interest could draw $6 trillion out of the banking system. Industry groups argue regulatory gaps could let yield-bearing stablecoin products disrupt traditional credit channels.
This debate is directly impacting legislation in Washington. The dispute over stablecoin rewards is currently stalling the U.S. Digital Asset Market Clarity Act. While Coinbase Chief Legal Officer Paul Grewal noted lawmakers are nearing agreement on core elements, the yield issue remains a key sticking point.
The disagreement has delayed a Senate Banking Committee markup. This leaves broader efforts to establish a federal framework for digital assets unresolved.
