{"id":56956,"date":"2025-11-05T22:01:36","date_gmt":"2025-11-05T22:01:36","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=56956"},"modified":"2025-11-05T22:01:36","modified_gmt":"2025-11-05T22:01:36","slug":"coinbase-official-says-banks-are-standing-in-the-way-of-financial-innovation","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=56956","title":{"rendered":"Coinbase Official Says Banks Are Standing In The Way Of Financial Innovation"},"content":{"rendered":"
\n

Coinbase filed for a national trust company charter in October 2025, a step the company says would let it offer custody and trust services under federal supervision rather than a patchwork of state rules.<\/p>\n

Reports show that the move immediately drew a formal challenge from the industry group representing many community banks.<\/p>\n

Coinbase Seeks A National Trust Charter<\/h2>\n

According to public filings and market coverage, Coinbase<\/a>\u2019s application names a subsidiary intended to operate as a national trust company.<\/p>\n

The company says the charter would help clients get regulated custody for crypto assets and make interactions with the broader financial system simpler.<\/p>\n

Regulators typically take time on these filings; some reports estimate the Office of the Comptroller of the Currency could take 12 to 18 months to complete its review.<\/p>\n

\"\"<\/p>\n

Bank Lobbying And The Argument For Caution<\/h2>\n

The Independent Community Bankers of America (ICBA) lodged a formal letter<\/a> arguing the application should be denied or given more time for public review.<\/p>\n

Based on the ICBA letter, the group raised three main concerns:<\/p>\n

\u2013 Coinbase\u2019s custody approach is untested for a bank-style duty<\/p>\n

\u2013 that the business may struggle to make money in a prolonged market downturn<\/p>\n

\u2013 federal receivership tools might not work well if such an entity were to fail.<\/p>\n

Coinbase\u2019s filings were cited in the ICBA submission as part of the basis for those points.<\/p>\n

\n

Imagine opposing a regulated trust charter because you prefer crypto to stay \u2026 unregulated. That\u2019s ICBA\u2019s position. It\u2019s 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\u2026 https:\/\/t.co\/200LCbMGa9<\/a><\/p>\n

\u2014 paulgrewal.eth (@iampaulgrewal) November 4, 2025<\/a><\/p>\n<\/blockquote>\n

Coinbase Pushes Back On Claims Of Protectionism<\/p>\n

According to Coinbase\u2019s Chief Legal Officer Paul Grewal, the opposition reads like a push to keep crypto activities out of a regulated banking framework.<\/p>\n

On social media, he wrote a pointed line arguing critics seem to prefer crypto staying unregulated \u2014 a comment widely reported by industry press.<\/p>\n

<\/p>\n

\u201cImagine opposing a regulated trust charter because you prefer crypto to stay\u2026 unregulated,\u201d Grewal said in an X post.<\/em><\/strong><\/p>\n

\u201cThat\u2019s ICBA\u2019s position. It\u2019s another case of bank lobbyists trying to dig regulatory moats to protect their own,\u201d he pointed out.<\/p>\n

Company spokespeople say they are seeking a regulated route, not to become a full commercial bank, and that a trust charter fits the services they want to provide.<\/p>\n

What Approval Or Denial Could Mean<\/p>\n

If the OCC approves Coinbase\u2019s charter, other crypto firms might follow, and a federal trust model could become more common for custody services.<\/p>\n

If The OCC thumbs down or substantially delays the application, crypto firms may keep relying on state charters, partnerships, or other workarounds.<\/p>\n

Industry analysts and trade groups are watching because the decision could shape whether major crypto firms move into federally supervised trust roles.<\/p>\n

What Happens Next<\/p>\n

The ICBA letter is dated in early November 2025 and the OCC has not released a public decision.<\/p>\n

The regulator\u2019s review period will include requests for additional information and time for public comment in some cases, so the process can stretch across many months.<\/p>\n

Featured image from Gemini, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Coinbase filed for a national trust company charter in October 2025, a step the company says would let it offer custody and trust services under federal supervision rather than a patchwork of state rules. Reports show that the move immediately drew a formal challenge from the industry group representing many community banks. Coinbase Seeks A […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-56956","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/56956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56956"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/56956\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}