Featured News Headlines
Coinbase and Paradigm Push Back Against Anti-Crypto Lobbying Efforts
Coinbase and Paradigm – The clash between traditional finance and digital asset firms is heating up, as major players like Coinbase and Paradigm accuse US banking groups of blocking crypto and stablecoin progress through protectionist policies.
Coinbase Targets Bank Lobby for Stifling Innovation
Paul Grewal, Chief Legal Officer at Coinbase, criticized the Independent Community Bankers of America (ICBA) for opposing the company’s national trust bank charter. Grewal called out the ICBA’s stance, saying, “Imagine opposing a regulated trust charter because you prefer crypto to stay unregulated. That’s ICBA’s position… another case of bank lobbyists trying to dig regulatory moats to protect their own.”
The ICBA claimed that Coinbase’s application does not meet statutory requirements and could set a “dangerous precedent” for the US banking system. Faryar Shirzad, Coinbase’s Chief Policy Officer, linked the debate to stablecoin regulation under the GENIUS Act, which mandates 1:1 backing, par redemption, and 24/7 oversight. Shirzad emphasized that stablecoins are “faster, cheaper, and safer” payment technology and predicted that attempts to defend outdated payment systems will ultimately fail, especially as many Bank Policy Institute (BPI) members already adopt stablecoins.
Paradigm: “If You Can’t Beat Them, Destroy Them”
Alexander Grieve, VP of Government Affairs at Paradigm, accused the BPI of presenting bad-faith arguments against stablecoins, describing their approach as “if you can’t beat them, destroy them.” Grieve compared stablecoins to previous innovations such as ETFs and Velcro, highlighting how technologies often outgrow their original frameworks.
He also suggested that allies of former SEC Chair Gary Gensler may be influencing anti-crypto sentiment within the BPI, characterizing these tactics as “antiquated political agendas.”
Banks Sound the Alarm on Financial Stability
Despite the push from crypto firms, traditional banks remain cautious. The BPI warned that integrating stablecoins into the TradFi system without “full safeguards” could expose the broader economy to crypto market shocks. The group also flagged risks in illicit finance management, underlining the potential pitfalls of rapid adoption.
The OCC’s decision on Coinbase’s trust charter will serve as a key indicator of US regulatory willingness to bring crypto firms into the banking ecosystem, while the GENIUS Act could become a landmark framework for stablecoin oversight if passed by Congress.
As digital payments and tokenized assets continue to expand, the power struggle between crypto innovators and traditional banks is poised to shape the next era of US financial regulation.
