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Coinbase Exec Criticizes Banks’ Pushback to Crypto Charter Application - news.adtechsolutions Coinbase Exec Criticizes Banks’ Pushback to Crypto Charter Application - news.adtechsolutions

Coinbase Exec Criticizes Banks’ Pushback to Crypto Charter Application


The Independent Community Bankers of America (ICBA) came out against the application of the cryptocurrency exchange Coinbase for a National Trust Company Card in the United States – a move that could threaten the interests of banks as the company approaches traditional finance.

In a letter on Monday to the US Office of the Comptroller of the Currency (OCC) – the office responsible for approving banking applications – the ICBA he said “strongly opposes” the Coinbase branch requesting a trust card. The letter cited “untested” elements related to crypto custody, and stated that the Coinbase arm would “struggle to achieve and maintain profitability during crypto bear markets.”

“Imagine the opposition to a regulated trust card because they prefer crypto to remain … unregulated,” he said The legal head of Coinbase Paul Grewal in a post on Tuesday X. “This is the position of ICBA. It is another case of banking lobbyists trying to dig regulatory ditches to protect their own.”

Coinbase, Government, Banks, Cryptocurrency Exchange
Source: Paul Grewal

Coinbase apply for a national trust card in October as part of its plans to “bridge the gap between the crypto economy and the traditional financial system.” Reports suggest that the OCC could take between 12 and 18 months to review the crypto exchange’s application.

Related: The Nordic bank that once shunned crypto to soon offer a Bitcoin ETP

The ICBA letter urged the OCC to reject Coinbase’s application, or, alternatively, allow more time for public review of the company’s business plan and “legal, prudential and public interest implications.”

Cointelegraph reached out to the OCC for comment, but had not received a response at the time of publication.

Crypto companies await notice from US regulators

Although Coinbase said it had “no intention of becoming a bank” through its filing with the OCC, other crypto companies, such as Ripple Labs and Circle, have applied for national bank charters. The moves follow the US government passing legislation to establish a framework for payment stablecoins – both Ripple and Circle have issued their own stablecoins, Ripple USD (RLUSD) and USDC (USDC).