Banks Panic as Stablecoins Threaten Their Empire đŸŠđŸ’„

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Coinbase and Paradigm, two digital-age gladiators, have publicly lambasted US banking cartels for allegedly waging a quixotic war against stablecoin innovation via “protectionist” tactics-a clash of titans that would make Dickens blush.

The schism between traditional finance (TradFi) and crypto’s upstarts is now a full-blown pissing contest, with both sides clamoring for regulatory clarity while secretly hoping to drown each other in red tape.

Coinbase Roasts Bank Lobby with “Regulatory Moat” Jabs

Coinbase’s Chief Legal Officer, Paul Grewal, took to X to mock the Independent Community Bankers of America (ICBA), whom he accused of opposing Coinbase’s trust bank charter application because “they prefer crypto to remain a chaotic Wild West.”

“Opposing a regulated trust charter because you want crypto to stay unregulated? That’s ICBA’s position
 another case of bank lobbyists trying to dig regulatory moats to protect their own,” Grewal quipped, channeling Shakespearean sarcasm. đŸ€Ą

The ICBA, meanwhile, claimed Coinbase’s application “fails to meet statutory standards” and would “set a dangerous precedent”-a statement so alarmingly vague it could’ve been written by a sleep-deprived intern.

ICBA urged the @USOCC to deny Coinbase’s application for a national trust bank charter for its subsidiary, Coinbase National Trust Co.

The application fails to meet statutory chartering standards and would set a dangerous precedent for the structure of the U.S. banking system.


– Independent Community Bankers of America (@ICBA) November 4, 2025

Coinbase’s Chief Policy Officer Faryar Shirzad doubled down, linking the kerfuffle to stablecoins, which he hailed as “a breakthrough in payments technology
 faster, cheaper, and safer.” He praised the GENIUS Act, which would subject stablecoins to the OCC’s watchful eye.

“Stablecoins are a breakthrough in payments technology
faster, cheaper, and safer. The GENIUS Act gives us clear rules: 1:1 backing, par redemption, and 24/7 supervision,” Shirzad wrote, as if explaining why Velcro is superior to shoelaces. đŸ§¶

He also noted that BPI member banks are “adopting stablecoins,” though whether this is out of curiosity or existential dread remains unclear.

Paradigm Slams BPI’s “Destroy Them” Mentality

Alexander Grieve of Paradigm accused the Bank Policy Institute of employing “bad-faith arguments” against stablecoins, suggesting they’ve adopted a “if you can’t beat them, destroy them” strategy. đŸ€ș

“The BPI seems to have taken the ‘if you can’t beat them, destroy them’ approach,” Grieve said, adding that stablecoins are as inevitable as Velcro fastening or ETFs-innovations that “evolve beyond their original purpose.”

He also hinted that former SEC Chair Gary Gensler’s allies might be steering BPI’s anti-crypto crusade, calling their tactics “antiquated political agendas”-a term that feels less like an insult and more like a compliment to the 1800s.

Bank Groups Warn of Financial Stability Risks (Spoiler: They’re Scared)

The Bank Policy Institute recently warned that integrating stablecoins into TradFi without “full safeguards” could let crypto’s “shocks” spill into the broader economy. A bold claim, though one wonders if they’ve ever used a VISA card.

If stablecoins become more integrated into the traditional financial system without full safeguards, crypto market shocks could infect the broader economy for the first time. Read the latest from BPI:

– Bank Policy Institute (@bankpolicy) November 3, 2025

The OCC’s decision on Coinbase’s charter will reveal how far regulators are willing to bend for crypto-a test of their spine, or at least their flexibility.

As for the GENIUS Act? It may yet become the crypto world’s version of a seatbelt: annoying, but there for your own good. As digital payments expand, the battle between crypto’s wild frontier and TradFi’s stately manor will only grow more absurd. Buckle up. 🚀

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2025-11-05 11:38