Coinbase Faces Opposition from US Banks Over Federal Trust Charter Application
Major US banking associations are intensifying their resistance against cryptocurrency firms, including Coinbase, seeking federal trust charters. The Bank Policy Institute and Independent Community Bankers of America have formally requested the Office of the Comptroller of the Currency to deny Coinbase's application, citing potential risks to the traditional financial system. Similar objections have been raised against other crypto companies like Ripple, Circle, and Paxos. This development highlights the ongoing tension between traditional financial institutions and the rapidly evolving cryptocurrency sector as it seeks greater integration into the mainstream financial landscape.
US Banks Push Back Against Crypto Firms Seeking Trust Charters
Major banking associations are escalating their opposition to cryptocurrency companies pursuing federal trust charters, arguing such moves threaten the stability of the traditional financial system. The Bank Policy Institute and Independent Community Bankers of America have formally urged the Office of the Comptroller of the Currency to reject Coinbase's application, with similar objections raised against Ripple, Circle, and Paxos.
At stake is more than regulatory paperwork—these charters would grant crypto platforms federal recognition while potentially allowing them to operate under different rules than conventional banks. Traditional lenders view this as an existential challenge, fearing crypto firms want the prestige of banking status without corresponding oversight.
Comptroller Jonathan Gould appears unmoved by the backlash. During recent remarks at the Clearing House conference, he suggested trust charters actually enhance the OCC's ability to supervise crypto activities. The standoff reflects broader tensions as digital asset companies seek legitimacy within the US financial infrastructure.
Coinbase Urges US Treasury to Avoid Overreach in GENIUS Act Rulemaking
Coinbase Global has called on the US Treasury Department to ensure its upcoming rules for the GENIUS Act remain faithful to Congress's original intent. The exchange warned that excessive regulation could stifle innovation and undermine US leadership in the crypto sector.
In a detailed response to the Treasury, Coinbase pressed for a narrow interpretation of the law, excluding non-financial software developers, blockchain validators, and open-source protocols from oversight. The company also proposed recognizing payment stablecoins as cash equivalents to simplify tax and accounting treatment.
Faryar Shirzad, Coinbase's Chief Policy Officer, emphasized that regulations must align with the bill's text to ensure US-issued stablecoins remain competitive globally. The exchange cautioned against expanding the law's scope beyond statutory requirements, arguing that overreach could hinder the crypto industry's growth.
BitMine Accumulates $137M in Ethereum as Institutional Demand Rebounds
BitMine, the cryptocurrency investment firm founded by Wall Street veteran Tom Lee, has acquired 40,718 ETH worth approximately $137 million. The move signals renewed institutional confidence in ethereum as markets recover. On-chain data reveals two major inflows totaling over 19,000 ETH ($69.89M) from Coinbase Prime and FalconX in the past 24 hours, followed by a 6,000 ETH ($29.28M) transfer from Galaxy Digital six days prior.
The firm has consistently expanded its digital asset portfolio with a focus on Ethereum exposure. Arkham Intelligence's entity-matching algorithm confirmed the transactions under BitMine's institutional address cluster. "Smart money is still accumulating ETH," observed Ash Crypto in a November 2025 tweet highlighting the acquisition.
