Coinbase Explores US Federal Banking License

Coinbase is contemplating applying for a US federal banking license. A representative of the exchange confirmed these plans in a comment to Cointelegraph.

However, the spokesperson noted that no official decision has been made by the company yet.

According to WSJ, several major crypto firms, such as stablecoin issuer Circle, custodian BitGo, and blockchain infrastructure company Paxos, are considering similar moves.

In 2021, Paxos received a preliminary national trust bank license from the Office of the Comptroller of the Currency (OCC) under the US Treasury.

Becoming a regulated financial institution allows for an expanded range and geography of services, but it also imposes stricter reporting and compliance requirements. Over the years, Paxos has faced an investigation by the New York State Department of Financial Services and claims from the SEC.

In January 2021, the OCC approved the application of cryptocurrency custodian Anchorage for a national “digital asset bank” license.

A year later, the regulator accused the company of “violating the operating agreement” due to deficiencies in its compliance program, which inadequately covered the provisions of the Bank Secrecy Act and anti-money laundering standards.

Earlier, Fed Chairman Jerome Powell suggested that regulators might ease requirements related to digital assets for financial institutions in the future.