Coinbase Official Says Banks Are Standing In The Way Of Financial Innovation

Coinbase filed for a national trust company charter in October 2025, a step the company says would let it offer custody and trust services under federal supervision rather than a patchwork of state rules.

Reports show that the move immediately drew a formal challenge from the industry group representing many community banks.

Coinbase Seeks A National Trust Charter

According to public filings and market coverage, Coinbase’s application names a subsidiary intended to operate as a national trust company.

The company says the charter would help clients get regulated custody for crypto assets and make interactions with the broader financial system simpler.

Regulators typically take time on these filings; some reports estimate the Office of the Comptroller of the Currency could take 12 to 18 months to complete its review.

Bank Lobbying And The Argument For Caution

The Independent Community Bankers of America (ICBA) lodged a formal letter arguing the application should be denied or given more time for public review.

Based on the ICBA letter, the group raised three main concerns:

– Coinbase’s custody approach is untested for a bank-style duty

– that the business may struggle to make money in a prolonged market downturn

– federal receivership tools might not work well if such an entity were to fail.

Coinbase’s filings were cited in the ICBA submission as part of the basis for those points.

Imagine opposing a regulated trust charter because you prefer crypto to stay … unregulated. That’s ICBA’s position. It’s another case of bank lobbyists trying to dig regulatory moats to protect their own. From undoing a law to go after rewards to blocking charters, protectionism… https://t.co/200LCbMGa9

— paulgrewal.eth (@iampaulgrewal) November 4, 2025

According to Coinbase’s Chief Legal Officer Paul Grewal, the opposition reads like a push to keep crypto activities out of a regulated banking framework.

On social media, he wrote a pointed line arguing critics seem to prefer crypto staying unregulated — a comment widely reported by industry press.

“Imagine opposing a regulated trust charter because you prefer crypto to stay… unregulated,” Grewal said in an X post.

“That’s ICBA’s position. It’s another case of bank lobbyists trying to dig regulatory moats to protect their own,” he pointed out.

Company spokespeople say they are seeking a regulated route, not to become a full commercial bank, and that a trust charter fits the services they want to provide.

If the OCC approves Coinbase’s charter, other crypto firms might follow, and a federal trust model could become more common for custody services.

If The OCC thumbs down or substantially delays the application, crypto firms may keep relying on state charters, partnerships, or other workarounds.

Industry analysts and trade groups are watching because the decision could shape whether major crypto firms move into federally supervised trust roles.

The ICBA letter is dated in early November 2025 and the OCC has not released a public decision.

The regulator’s review period will include requests for additional information and time for public comment in some cases, so the process can stretch across many months.

Featured image from Gemini, chart from TradingView