A legal battle is brewing over Coinbase’s ambitious plan to gain a national trust company charter, with the Independent Community Bankers of America (ICBA) leading the opposition. The ICBA argues that granting such a license would blur regulatory lines between traditional banks and crypto firms, potentially jeopardizing financial stability. They expressed concerns about the firm’s untested plans for crypto custody operations, claiming it would struggle to achieve profitability during market downturns. In a letter sent to the Office of the Comptroller of the Currency (OCC), the ICBA urged rejection of Coinbase’s application or a postponement to allow for public comment. Coinbase’s bid is intended to bridge the gap between the crypto economy and traditional financial systems, but its strategy faces challenges from the banking lobby group. Coinbase Chief Legal Officer Paul Grewal responded, accusing the ICBA of opposing regulated trust structures due to a preference for unregulated crypto markets. This clash highlights the growing tension over the role of crypto in finance and how it interacts with existing regulatory frameworks.