Coinbase's plan to secure a National Trust Company Charter is facing significant opposition from the Independent Community Bankers of America (ICBA). The banking group has formally urged the Office of the Comptroller of the Currency (OCC) to deny Coinbase's application, expressing strong concerns about the potential blurring of regulatory lines between traditional banking and the crypto industry. The ICBA's letter, sent on November 3, 2025, highlighted that elements of Coinbase's proposal are “untested” and warned that its crypto custody operations would be exposed to market volatility. This opposition from a prominent banking lobby presents a hurdle for Coinbase's strategic goal of further integrating with the traditional financial system. Obtaining a National Trust Charter is a key part of Coinbase's strategy to offer a wider range of regulated financial products and services. The ICBA argued that Coinbase's trust subsidiary would struggle to maintain profitability during cryptocurrency bear markets, posing a risk to the broader financial system. The outcome of this challenge will be closely watched as it could set a precedent for how regulators approach the convergence of crypto and traditional finance.