Coinbase Faces Pushback From U.S. Banks Over Trust License Bid

Coinbase executives have criticized U.S. banks for opposing the cryptocurrency exchange’s effort to secure a national trust company license, a step the firm says is key to connecting digital assets with traditional finance.

The Independent Community Bankers of America (ICBA) submitted a formal objection to the Office of the Comptroller of the Currency (OCC), which oversees banking charters and approvals. The ICBA argued that Coinbase’s proposal raises concerns about profitability and regulatory risk, citing “unverified aspects of the cryptocurrency custody business.”

ICBA urged the @USOCC to deny Coinbase’s application for a national trust bank charter for its subsidiary, Coinbase National Trust Co.

The application fails to meet statutory chartering standards and would set a dangerous precedent for the structure of the U.S. banking system.…

— Independent Community Bankers of America (@ICBA) November 4, 2025

Coinbase filed its application in October, calling the license an important move to “build bridges between the crypto economy and the traditional financial system.”

A trust license would allow Coinbase to offer asset custody and depository services nationwide, giving it more flexibility to serve both institutional and retail clients.

Coinbase fires back at banking lobby

Coinbase General Counsel Paul Grewal responded sharply to the ICBA’s opposition, writing on X (formerly Twitter)

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

Grewal accused the banking lobby of trying to “dig regulatory moats” to protect its interests rather than promote fair competition.

According to reports, the OCC’s review process could take 12 to 18 months, meaning a decision on Coinbase’s application may not come until late 2025. The ICBA, meanwhile, urged the regulator to either deny the request or extend public review, citing the need to analyze Coinbase’s legal, prudential, and public interest implications.

OCC officials did not respond to a request for comment by publication time.

Other сrypto firms await decisions

While Coinbase maintains that it “does not intend to become a bank”, other crypto giants are taking similar steps. Ripple Labs and Circle have both applied for national bank licenses, following new U.S. legislation outlining a regulatory framework for payment stablecoins.

Ripple and Circle have each launched their own stablecoins — Ripple USD (RLUSD) and USD Coin (USDC). The OCC was expected to finish reviewing Ripple’s application last week, but no public decision has been announced. Ripple also declined to comment on the pending review.