Coinbase's CEO criticizes banks' opposition to cryptocurrency trust charters.

Coinbase's legal director, Paul Grewal, criticized American banks for blocking the company from applying for a federal trust license, accusing them of fearing competition. Previously, the Independent Community Bankers of America (ICBA) called on the OCC to reject Coinbase's application, arguing that the cryptocurrency model is “risky and unproven.”

Coinbase stated that being licensed will place them under federal oversight, helping to expand custody, trading, and payment services. Grewal responded that ICBA “fears competition, not risk,” accusing banks of trying to maintain their privileges.

The company asserts that it does not want to become a traditional bank but only hopes to operate within a unified legal framework to increase transparency and protect users. However, banks are concerned that this will set a dangerous precedent and threaten their monopoly position as cryptocurrency companies become more efficient thanks to technology.