US Banks Lobby to Block Coinbase’s National Trust License
Tensions between traditional finance and the crypto industry have deepened as major US banking associations move to block Coinbase’s application for a national trust charter, which would allow the exchange to operate regulated custodial and fiduciary services nationwide.
Coinbase’s bid for national status
Coinbase submitted its application for a national trust company charter to the US Office of the Comptroller of the Currency (OCC) in October 2025. The exchange described the step as part of its strategy to “build bridges between the crypto economy and traditional finance,” allowing it to provide secure custody and digital asset management under federal oversight.
A national trust charter would enable Coinbase to serve institutional clients across state lines without separate local registrations — a key milestone for expanding its institutional and ETF-related services.
Banking lobby strikes back
The Independent Community Bankers of America (ICBA) sent a formal letter to the OCC on Monday, urging the regulator to reject Coinbase’s request.
“The ICBA strongly opposes granting a federal trust license to any entity primarily engaged in cryptocurrency activities,” the organization wrote. “Such approval would undermine consumer protection and erode the integrity of the banking system.”
The association’s position echoes long-standing concerns among banks that crypto firms could gain quasi-bank status without being subject to identical capital and compliance rules.
Coinbase’s response
In a public statement, Coinbase executives criticized the banking sector’s resistance, arguing that “innovation should not be blocked by incumbents protecting outdated models.” The company emphasized that its proposed trust subsidiary would meet full AML and KYC requirements and be subject to OCC supervision.
Coinbase maintains that traditional banks have had years to develop crypto custody solutions but have largely avoided the sector, leaving market demand unmet.
Regulatory context
The OCC — a division of the US Treasury Department — has previously granted limited trust charters to digital-asset custodians such as Anchorage Digital and Protego Trust. However, both cases faced scrutiny from lawmakers concerned about risk exposure and governance standards.
Analysts note that Coinbase’s high profile and public market status make its application a major test for how Washington intends to integrate crypto institutions into the national financial framework.
Outlook
The OCC has not yet issued a timeline for its decision. If approved, the license could set a precedent for other crypto companies seeking national banking status. If rejected, it would signal that the banking lobby still wields significant influence over federal policy in the post-Trump regulatory era.
For now, Coinbase’s application embodies the growing friction between Wall Street and Silicon Valley — a struggle over who will control the future of digital finance in the United States.
Editorial Team — CoinBotLab