The Independent Community Bankers of America (ICBA) has submitted a formal request to the Office of the Comptroller of the Currency (OCC) to deny Coinbase's application for a federal trust bank license. The ICBA cites several concerns, including Coinbase's inability to meet statutory standards, questionable profitability during bear markets, risks associated with handling failed institutions, and inadequate risk management systems. Additionally, the ICBA argues that the procedural basis for Coinbase's application, relying on an OCC interpretive letter, is improper.
This move follows similar opposition from the Bank Policy Institute, which has also contested trust license applications from Ripple, Circle, and Paxos. The ICBA is calling for the OCC to disclose more application materials and to hold a public hearing on the matter.
ICBA Urges OCC to Reject Coinbase's Federal Trust Bank License Application
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