Coinbase's application for a federal trust bank license faces opposition from U.S. banking lobby groups.

The Independent Community Bankers of America, a lobbying organization for the U.S. banking industry, submitted comments to the Office of the Comptroller of the Currency (OCC) requesting the rejection of Coinbase's application for a federal trust bank charter. The reasons include the inability to meet multiple statutory standards, questionable profitability in a Bear Market, risks associated with the disposal of failed institutions, an inadequate risk control system, and improper procedures in the OCC's explanation letter on which Coinbase relied. Previously, the Wall Street lobbying organization Bank Policy Institute also opposed applications for trust charters from Ripple, Circle, and Paxos. The ICBA also requested that the OCC disclose more application materials and hold a hearing. (CoinDesk)