ICBA Challenges OCC Approval of Coinbase National Trust Bank Charter

The Independent Community Bankers of America (ICBA) has challenged the Office of the Comptroller of the Currency's (OCC) conditional approval of Coinbase's national trust bank charter application. The ICBA claims that the application contains significant problems, including 'flawed risk and control functions, profitability challenges, and resolution risks.'

The Washington, D.C.-based trade group representing thousands of community banks across the United States argued that Coinbase failed to meet National Bank Act standards. This is not the first time the ICBA has pushed back on Coinbase's banking ambitions. In a letter filed in November last year, the ICBA formally objected to the application.

Coinbase's stock was trading up 0.02% during after-hours trading, but the ICBA's opposition raises questions about what would happen to customer assets if the company were to fail. A national trust bank charter would allow Coinbase to offer custody and trust services under federal oversight without being subject to traditional Federal Deposit Insurance Corporation (FDIC) insured banks.