Coinbase Secures Conditional OCC Approval For National Trust Charter – Details

Coinbase, the largest crypto exchange in the US, has achieved a major milestone after securing a key approval from the main banking regulator, which could unlock a broader market for the company.

In the official statement, Coinbase outlined the scope of the charter, explaining that the company is not becoming a commercial bank and will not take retail deposits or engage in fractional reserve banking.

“This charter is about bringing federal regulatory uniformity to the custody and market infrastructure business we have been building for years. The OCC charter was designed precisely for this purpose — to provide clear oversight over assets in safekeeping — and that is exactly how we intend to use it,” the announcement read.

Moreover, the approval signals that the federal regulatory framework is transforming to align with the evolving landscape that crypto has been gradually shaping.

In February, stablecoin platform Bridge, owned by Stripe, and crypto exchange Crypto.com announced they had also secured the OCC’s conditional approval to establish a national trust bank. However, US banks have raised concerns that the approvals could blur the lines between banking activities and lead to regulatory arbitrage.

In its letter, ABA called for patience as emerging regulatory frameworks take shape, proposing that the review process continue when the US Congress completes the rules that will ultimately govern many recent applicants for the OCC’s charter.

The banking lobby cited uncertainty surrounding emerging business models, the need for increased transparency in the charter application and decision-making processes, and the absence of finalized federal oversight as key reasons for the proposed delay.