Banks Oppose Coinbase’s OCC Trust Charter Over Crypto Risk

Coinbase has applied to the Office of the Comptroller of the Currency (OCC) for a federal trust charter via its Coinbase National Trust Company, seeking unified oversight for digital asset custody, staking, trading, lending and fiat services. Submitted in October 2025, the OCC trust charter aims to reduce state-by-state licensing, lower compliance costs, and attract institutional investors. A coalition led by the Independent Community Bankers of America (ICBA) has formally opposed the bid. Banks argue that Coinbase’s risk controls, governance and stress tests for crypto assets are insufficient, creating liquidation and reputational risks and exposing the OCC to untested clearing liabilities. Coinbase counters that banks oppose the trust charter to limit competition rather than address genuine safety concerns. Approval could set a precedent for firms like Ripple and Circle, accelerate institutional adoption of crypto, and bring up to $500 billion in assets under federal oversight by 2030. Rejection or delay would reinforce banks’ regulatory advantages and push crypto companies toward state or overseas charters. The OCC’s decision will test regulators’ balance between innovation and financial stability.