ICBA Slams OCC's Conditional Approval of Coinbase National Trust Charter

The Independent Community Bankers of America (ICBA) is pushing back against the Office of the Comptroller of the Currency's (OCC) conditional approval of a national trust bank charter for Coinbase, arguing the move could expose U.S. consumers to greater risk. In a statement released this week, the trade group representing thousands of community-focused financial institutions said Coinbase's application falls short of legal and regulatory requirements. ICBA cited concerns spanning risk management, profitability, and what it described as oversight gaps for crypto firms. "Today's conditional approval of Coinbase's trust charter application is a grave mistake that will only serve to put US consumers at risk," ICBA President and CEO Rebeca Romero Rainey said. ICBA has previously urged the OCC to reject Coinbase's bid to form a national trust bank. Last November, the group called on the agency to deny the application or, at minimum, require additional disclosure and broader public review. The OCC nevertheless granted conditional authorization. Coinbase has emphasized the charter would not turn it into a full-service commercial bank. "Coinbase is not becoming a commercial bank. We will not be taking retail deposits. We will not be engaging in fractional reserve banking," Greg Tusar said. The dispute follows other OCC decisions involving crypto-related applicants. After the agency approved applications from firms such as Ripple and Circle, ICBA joined other major banking trade groups, including the American Bankers Association (ABA), in a letter urging the OCC to pause pending national trust bank applications. ICBA argues the OCC is stretching its authority under Interpretive Letter 1176, warning that fintech firms can sidestep comprehensive bank regulation while receiving comparable benefits. The group says the approach could raise consumer protection concerns and introduce systemic risk. The latest clash adds to friction between traditional lenders and digital-asset companies as lawmakers debate the CLARITY Act, including provisions tied to stablecoin yields. Banks have warned those yields could pull funds away from traditional deposits. After early disputes over the bill contributed to the cancellation of a January committee meeting, momentum returned in late March when Senators Thom Tillis and Angela Alsobrooks negotiated compromise language and reached an agreement in principle with the White House. Coinbase Chief Legal Officer Paul Grewal told FOX Business this week that policymakers are "very close" to an agreement on the CLARITY Act. He said the measure could move soon, with a Senate Banking Committee markup possible in the coming weeks, followed by a vote on the Senate floor.