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

Coinbase is facing opposition from notable banking groups, including the Independent Community Bankers of America (ICBA) and the Bank Policy Institute (BPI), as it seeks a national trust bank charter for its subsidiary, Coinbase National Trust Co. The banking lobbyists argue that Coinbase's application raises systemic concerns and does not meet required standards, suggesting it would set a dangerous precedent in the banking system. Paul Grewal, Coinbase's Chief Legal Officer, criticized this stance, claiming it is rooted in a desire to maintain an unregulated crypto environment to protect their own interests. The ICBA asserts that Coinbase's proposal lacks clarity and poses risks due to its governance structure. The BPI cautions that the approval could exceed the OCC’s authority unless Coinbase is primarily engaged in fiduciary activities. This ongoing debate reflects broader tensions between traditional banking institutions and the emerging cryptocurrency sector.

Source 🔗