Key Takeaways:
- ICBA urges OCC to deny Coinbase’s national trust bank charter.
- Concerns include risk management, profitability, and governance gaps.
- Decision could reshape U.S. banking oversight for digital asset firms.
Coinbase Meets Resistance from ICBA on Bank Charter Bid
The Independent Community Bankers of America (ICBA) has urged the Office of the Comptroller of the Currency (OCC) to reject Coinbase’s application for a national trust bank charter for its subsidiary, Coinbase National Trust Co. (CNTC). In a strongly worded letter dated November 4, 2025, the ICBA cited multiple deficiencies in Coinbase’s proposal, claiming it fails to meet the standards outlined under the National Bank Act and OCC regulations.
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Concerns Over Governance, Risk, and Precedent
According to the ICBA, Coinbase’s charter bid poses “compounding safety and soundness risks” and could set a “dangerous precedent” for the structure of the U.S. banking system. The association flagged serious governance and profitability concerns, as well as resolution and risk management weaknesses that could endanger regulatory integrity if left unaddressed.
The ICBA emphasized that Coinbase’s plan does not align with the traditional requirements of federally chartered banks, which are designed to protect depositors and ensure system stability. The group called for greater transparency from the OCC, urging it to release details of CNTC’s business model, extend the public comment period, and hold a formal hearing.
A Call for Stronger Oversight in Digital Finance
This development highlights growing tensions between traditional banking institutions and digital asset firms seeking bank-like status. ICBA’s opposition signals the industry’s broader concern that granting Coinbase a national charter could blur the lines between regulated banking and crypto services.
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The ICBA reiterated its commitment to working with policymakers to ensure “strong, clear, and consistent oversight” of digital asset service providers — an approach it believes will preserve trust and accountability in the financial system.
The Bottom Line
As Coinbase pushes to expand its regulatory footprint, community banks are drawing a clear line on what they see as risky regulatory overreach. Whether the OCC grants or denies the charter will have lasting implications for how crypto institutions are integrated — or restricted — within the U.S. banking landscape.
