Coinbase Faces Opposition from Banking Groups Over Federal Trust Charter Bid

The Independent Community Bankers of America (ICBA) has formally opposed Coinbase's application for a National Trust Company Charter, marking a significant escalation in the ongoing tensions between traditional banking institutions and cryptocurrency firms seeking to enter regulated financial spaces. In a letter dated November 3 and addressed to the Office of the Comptroller of the Currency (OCC), the ICBA raised concerns about the "untested" nature of Coinbase's custody operations and highlighted potential profitability risks during market downturns. This opposition underscores the broader challenges crypto companies face when attempting to integrate into the traditional financial system, as established players push back against their expansion. The move also reflects the growing scrutiny over crypto firms' operational and financial stability as they seek regulatory approval for services traditionally dominated by banks. As of November 2025, the outcome of Coinbase's bid remains uncertain, but the ICBA's stance signals a contentious road ahead for crypto enterprises aiming to bridge the gap between decentralized finance and conventional banking frameworks.

Banking Groups Challenge Coinbase’s Path to Federal Trust Charter

The Independent Community Bankers of America has formally opposed Coinbase's bid for a National Trust Company Charter, escalating tensions between traditional banks and crypto firms venturing into regulated finance. In a November 3 letter to the Office of the Comptroller of the Currency, the trade group flagged concerns over the "untested" nature of the exchange's custody operations, warning of profitability risks during crypto market downturns.

Community banks seek either rejection or extended review timelines, wary of competition from crypto platforms as digital asset firms increasingly intersect with traditional finance. Despite regulatory headwinds, investor appetite persists, with traders scouting opportunities through presale lists while established players await federal approvals—highlighting the market's fragmented momentum.

Coinbase Abandons $2 Billion BVNK Acquisition in Strategic Reversal

Coinbase Global has terminated its planned $2 billion acquisition of BVNK, a London-based stablecoin infrastructure provider. The deal WOULD have ranked among the largest stablecoin transactions in crypto history. Both parties mutually agreed to withdraw from advanced exclusivity talks that began in October.

The collapse leaves BVNK free to pursue other suitors, with Mastercard reportedly maintaining interest. Coinbase's spokesperson stated the exchange remains committed to expanding its mission and product lines, but offered no specifics on the deal's termination. Market observers note the failed acquisition removes a potential catalyst for broader stablecoin adoption.

Coinbase Shifts Corporate Domicile from Delaware to Texas, Citing Legal Advantages

Coinbase, the largest U.S. cryptocurrency exchange, has opted to reincorporate in Texas, abandoning its long-standing Delaware registration. The move, announced by Chief Legal Officer Paul Grewal, signals a strategic pivot toward jurisdictions offering stronger corporate protections against shareholder litigation.

Texas' legal framework provides robust defenses for corporate decision-makers—a critical consideration as Coinbase navigates ongoing Delaware court battles. The shift reflects intensifying competition among states to attract major corporations, challenging Delaware's historical dominance in corporate registrations.

While Delaware's Chancery Court has long been the gold standard for corporate disputes, Texas is emerging as a viable alternative for tech-forward companies. The relocation follows Tesla's 2023 headquarters MOVE to Austin, suggesting a broader migration pattern among innovation-driven firms.