Coinbase has received final approval from US banking regulators to operate a national trust bank, giving the crypto exchange federal oversight for its custody operations and supporting its planned payment services.
OCC Grants Full Charter
The Office of the Comptroller of the Currency (OCC) approved Coinbase’s national trust bank charter last week, according to a November 9 report. The final approval followed a conditional approval in April, after which the firm worked to address the regulator’s outstanding issues.
Coinbase spent several months preparing for full approval, strengthening internal systems, hiring new employees, and completing regulatory reviews during that period.
Scope of Operations
Coinbase’s application to the OCC outlines plans to expand crypto custody and payment services under federal supervision. Bloomberg reported that the charter could support Coinbase’s stablecoin operations, including issuing tokens and managing them for other crypto companies.
However, the approval does not allow Coinbase National Trust to take deposits from regular customers or offer conventional commercial loans.
Coinbase Vice Chairman Ryan VanGrack said the company has been working for years to find “clear rules and rigorous oversight.” He described the approval as a further step in bringing digital assets into the U.S. financial system.
Other Crypto Firms Seek Trust Charters
Coinbase joins other digital asset companies pursuing national trust charters as federal regulators contemplate new financial services. Ripple secured full approval for its trust bank charter in October, according to the November 9 reporting. Galaxy Digital has also sought a national trust bank charter from the OCC to develop its regulated financial operations.
World Liberty Financial, a crypto firm closely linked to the Trump family, previously secured conditional approval for its trust bank charter. Meanwhile, the GENIUS Act set out federal regulations for payment stablecoins and qualifying issuers in the U.S.
Banking Groups Challenge OCC Approach
Not all banks support the regulator’s approach to approving digital asset businesses. The Independent Community Bankers of America has sued the OCC, challenging its authority to issue certain national trust charters.
Separately, the SEC proposed changes to crypto broker-dealer regulations concerning capital requirements, customer assets, and business records. The proposals address existing securities regulations applicable to broker-dealers that handle digital assets. The amendments are listed on the SEC’s regulatory agenda and will go through the regulatory process before taking effect.
