ICBA demands the rejection of Coinbase's banking license, while Coinbase retaliates by stating that it is "monopolizing regulatory authority and stifling innovation."

The Independent Community Bankers of America (ICBA) recently sent a letter to the Office of the Comptroller of the Currency (OCC), requesting the rejection of the national trust bank charter application from Coinbase's subsidiary, Coinbase National Trust Co. They stated that the application does not meet statutory standards and warned that approval would set a "dangerous precedent" for the U.S. banking system.

In response, Coinbase's Chief Legal Officer Paul Grewal strongly stated that the ICBA's actions are "blatant protectionism," attempting to monopolize regulatory pathways, eliminate competitors, and stifle crypto innovation. He said, "They oppose our obtaining a compliant charter not because we do not meet regulations, but because they would rather see the crypto industry excluded from the regulatory framework to maintain the old financial privilege barriers."