Coinbase considering applying for US bank license

US-based publicly traded crypto exchange Coinbase confirmed that it is considering applying for a US federal bank charter.In a statement sent to Cointelegraph, Coinbase said it is considering pursuing a US federal bank charter, a company spokesperson said.“This is something Coinbase is actively considering but has not made any formal decisions yet,” the spokesperson told Cointelegraph. Coinbase in-office photo. Source: CoinbaseThe comments follow recent reports suggesting that Coinbase and multiple other major crypto firms were planning to apply for a banking license in the United States. Coinbase, stablecoin issuers Circle and Paxos, and crypto custodian BitGo are the firms in question.Coinbase did not clarify why it is considering pursuing a bank charter by the time of publication. Still, the license could potentially allow crypto firms to operate like traditional lenders, taking deposits and making loans.On the other hand, firms that obtain banking charters are subject to stricter reporting and regulatory oversight. One example is Anchorage Digital, a crypto firm holding a federal bank charter.Despite the firm obtaining the license, recent reports indicate that the US Department of Homeland Security’s El Dorado Task Force has reportedly launched an investigation into Anchorage Digital Bank.Related: Crypto companies seeking bank charters under Trump admin — ReportMany crypto firms are likely to applyCointelegraph reached out to the other firms reportedly considering a charter. Coinbase was the only one to respond without denying the report. The reports also follow the US Office of the Comptroller of the Currency granting a preliminary conditional approval for a US bank charter to Paxos back in 2021. The firms are now considering applying as the US regulators take a much softer stance on crypto regulation and integrate stablecoins in the broader financial system.The change in stance is visible at multiple levels of the US federal government. Federal Reserve Chair Jerome Powell recently said that as digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea.” He also recognized that the crypto space delivered a consumer use case that “could have wide appeal.”Related: ECB flags risk of financial contagion from US crypto pushEvolving US stablecoin regulationThe US House Financial Services Committee passed a Republican-backed stablecoin framework bill earlier in April — the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.Another bill that is moving through the US legislative process is the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The STABLE and GENIUS bills differ in how they regulate the stablecoin industry in their current form.The GENIUS Act was introduced first and passed the US Senate Banking Committee in mid-March. The STABLE Act, on the other hand, emphasizes federal oversight, while the GENIUS Act seeks a more flexible path that considers both state and federal regulations.The STABLE Act also enforces a two-year moratorium on issuing collateralized stablecoins that are backed by self-issued digital assets. The bill also enforces that stablecoin reserves be held separate from business funds.The GENIUS Act establishes a legal framework for stablecoin payments and leverages US-based stablecoin issuers in an attempt to reinforce the dollar’s global dominance. The bill also enhanced Anti-Money Laundering (AML) safeguards, reserve and liquidity standards and sanctions checks. It classifies stablecoin issuers as financial institutions.Magazine: Coinbase and Base: Is crypto just becoming traditional finance 2.0?Weiter zum vollständigen Artikel bei Cointelegraph Weiter zum vollständigen Artikel bei Cointelegraph