Coinbase CLO: Bank Groups Opposing Trust Charter Bid Engaging in 'Protectionism'

Coinbase's CLO Paul Grewal has asserted that major banking groups, specifically the Independent Community Bankers of America (ICBA) and the Bank Policy Institute (BPI), are attempting to hinder Coinbase's bid for a national trust bank charter by filing letters to the Office of the Comptroller of the Currency. These groups claim the application lacks clarity, raises systemic risks, and needs more disclosure regarding Coinbase's business plan. Grewal criticized this opposition as an example of banks wanting to maintain less regulation for cryptocurrencies to protect their interests, describing it as 'protectionism'. Coinbase's request for a charter aims to enhance its Prime Vault and Prime Custody operations. The BPI even warned that approving such a charter might exceed the OCC's authority. Critics argue that banks fear increased competition if Coinbase becomes a federally regulated entity, marking a significant shift in the financial landscape.

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