Coinbase Wins Conditional US Trust Charter
Coinbase secured conditional approval from the Office of the Comptroller of the Currency for a national trust charter on Thursday, marking a regulatory win despite banking industry pushback.
Key Takeaway
Coinbase's charter approval signals US regulators may be warming to crypto despite traditional banking opposition.
The Office of the Comptroller of the Currency granted Coinbase conditional approval for a national trust charter on Thursday, marking a regulatory win for the exchange despite pushback from the banking industry.
The American Banking Association opposed Coinbase's application in December, claiming the company has demonstrably flawed risk and control functions and operates under governance that prevents independent oversight. The banking lobby had urged the OCC in February to slow its review of crypto charter applications.
Coinbase made clear it's not pursuing traditional banking activities. The company said it will not take retail deposits and will not engage in fractional reserve banking. The conditional approval positions Coinbase to build the next chapter of finance with the regulatory confidence that partners, customers, and the broader market need, according to the company's statement.
The OCC also granted conditional approval for trust charters to Ripple, Circle, Crypto.com, and Paxos on Thursday. World Liberty Financial, the DeFi platform backed by Donald Trump, has applied for a charter as well.
This article was written based on reporting from Dlnews.
