Banks Blocking Crypto? Coinbase Roasts The Establishment 🚨

by

Dearest reader, let us discuss the latest tango between Coinbase and our beloved community banks. In October 2025, Coinbase filed for a national trust company charter-a move they claim will let them offer custody and trust services under federal supervision, as if dodging a dozen state rules were the height of sophistication. One must ask oneself: why not just host a tea party and call it a day?

Coinbase Seeks A National Trust Charter

According to filings and market whispers, Coinbase’s subsidiary is to operate as a national trust company. They argue this would allow clients to store crypto assets with regulated custody and interact with the broader financial system “simpler.” Simpler! As if banking isn’t already a delightful puzzle wrapped in a riddle.

Regulators, bless their ponderous hearts, may take 12 to 18 months to review the application. Such is the pace of progress-or perhaps a very British afternoon tea.

Bank Lobbying And The Argument For Caution

The Independent Community Bankers of America (ICBA) have thrown their weight behind a formal letter arguing the application should be denied-or, heaven forbid, given more time for public review. How thrilling! Three concerns, you say? Let’s dissect them:

  • Coinbase’s custody approach is “untested” for a bank-style duty. Oh, how quaint! Perhaps they’d prefer to keep crypto in the Stone Age?
  • The business may struggle to make money in a prolonged market downturn. Naturally. Who wouldn’t thrive when the sun doesn’t shine?
  • Federal receivership tools might not work well if the entity fails. A bold claim, as if federal tools are mere child’s playthings.

Coinbase’s filings were cited in the ICBA submission. How noble of them to engage in such high-stakes theatre!

“Imagine opposing a regulated trust charter because you prefer crypto to stay… unregulated. That’s ICBA’s position. It’s another case of bank lobbyists trying to dig regulatory moats to protect their own.”

– paulgrewal.eth (@iampaulgrewal) November 4, 2025

Coinbase Pushes Back On Claims Of Protectionism

Paul Grewal, Coinbase’s Chief Legal Officer, took to social media to accuse critics of preferring crypto to remain unregulated. A bold accusation, to be sure. One can almost hear the clinking of teacups in disapproval.

“Imagine opposing a regulated trust charter because you prefer crypto to stay… unregulated,” Grewal said in an X post.

“That’s ICBA’s position. It’s another case of bank lobbyists trying to dig regulatory moats to protect their own,” he declared. A Shakespearean drama, if ever there was one.

Company spokespeople insist they seek a regulated route, not to become a full commercial bank. How… modest.

What Approval Or Denial Could Mean

If the OCC approves Coinbase’s charter, other crypto firms may follow, ushering in a new era of federally supervised trust roles. If not, they’ll likely rely on state charters or partnerships. The industry watches with bated breath, like villagers awaiting the return of a long-lost relative.

What Happens Next

The ICBA letter, dated November 2025, has yet to receive a public response from the OCC. The regulator’s review period, with its requests for information and public comment, may stretch into next year. One can only hope they serve tea and scones during deliberations.

Read More

2025-11-06 02:02