Coinbase’s application for a national trust bank charter is facing opposition from the traditional banking sector, sparking debate about whether it’s driven by genuine consumer protection concerns or a desire to stifle competition. Coinbase executives argue that the resistance stems from banks fearing their dominance being challenged by fintech innovation. While some banks express concern about potential risks to consumers and financial stability, others are skeptical of Coinbase’s preparedness for national trust banking due to its lack of established compliance history and risk management frameworks. The outcome of this application will have implications beyond just Coinbase as it could set a precedent for how the industry is regulated in the future.