A US Bank lobbying group To reject the Coinbase application For a charter of trust, the crypto exchange dispute falls into the requirements in several categories.
The Independent Community Bankers of America, an influential group focused on the policy needs of thousands of smaller institutions, wrote the US banking sector’s latest attempt to throw objections to the crypto industry’s forays into the overlap territory once controlled by traditional bankers. Tuesday’s letter to the OCC said it “strongly” opposed Coinbase’s effort, which it said failed “on multiple independent grounds, each of which does not qualify under the OCC’s statutory standards.”
It follows a A similar effort last week from the Wall Street Lobbying Group Bank Policy Institute Opposition to trust applications from several other crypto-related companies, including Ripple, Circle and Paxos.
The ICBA letter argued that Coinbase’s trust bank would struggle to operate at a profit in a bear market, that the OCC would face difficulties in safely liquidating the trust if it failed and that Coinbase National Trust Co relied on “demonstrably flawed risk and control functions.” The association also argued The OCC’s so-called interpretive letter That was used as the basis for the exchange application was not properly granted.
ICBA requested that the National-Bank Regulator reject Coinbase’s application, or at least expand the parts of Coinbase’s application materials that are publicly available and hold a public hearing to review it. BPI has made many similar claims about other companies.
Neither the OCC nor Coinbase immediately responded to requests for comment on the ICBA letter.
The largest exchange of digital assets based in the US-whose CEO, Brian Armstrong, has become a Regular guest of the White House In recent crypto policy events – the charter was requested last month In an effort to expand services such as payments and settlement and to ease the demands of the new financial services are facing approval in 50 separate state jurisdictions. The company says it has no designs on becoming a full-service bank.
“This application fails to meet the statutory charter standards, presents safety risks and sound risks and will set a dangerous precedent for the structure of the US banking system,” according to the letter, signed by ICBA’s Brian Laverdure, senior vice president for digital assets and innovation policy.
The OCC has its permanent leader on the helmet then Jonathan Gould’s confirmation. Gould is among only a handful of pro-crypto financial regulators Donald Trump will be confirmed by the Senate, even though the first year of the president’s four-year term is missing.
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