Coinbase Trust Charter Faces Bank Opposition
In October 2025, Coinbase filed for a national trust charter with the US Office of the Comptroller of the Currency (OCC). The Coinbase trust charter aims to simplify crypto custody and integrate digital assets into the broader financial system under a federal framework.
The Independent Community Bankers of America (ICBA) formally challenged the application. It raised concerns about untested custody duties, profitability during market downturns, and the effectiveness of federal receivership tools.
Coinbase’s Chief Legal Officer, Paul Grewal, dismissed these objections as bank protectionism. He argued that critics prefer crypto to remain unregulated.
If approved, the Coinbase trust charter would allow Coinbase and other crypto firms to operate under federal oversight rather than state charters. Approval could shift custody services toward a unified federal model. A denial or prolonged delay would maintain the current state-by-state system.
Traders should monitor the OCC’s estimated 12–18 month review timeline to gauge potential impacts on crypto custody and market regulation.
Neutral
Coinbase’s pursuit of a national trust charter has no immediate effect on any specific cryptocurrency price. In the short term, the 12–18 month OCC review timeline creates uncertainty and low immediate trading impact. Over the long term, a federal charter could enhance trust in institutional custody services, potentially boosting demand for major digital assets. However, if the application is delayed or denied, the market will remain under the current fragmented state framework, limiting broader institutional entry. Overall, the news is regulatory and operational in nature, with no direct trigger for price movements. Traders are unlikely to adjust positions solely based on this development.