The Office of the Comptroller of the Currency (OCC) has granted a national bank trust charter to Coinbase, marking a pivotal development in the intersection of cryptocurrency and traditional banking. This decision follows a six-month review process and is seen as a significant step for the industry.
Coinbase's Chief Legal Officer, Paul Grewal, announced the conditional approval on social media, highlighting the company's intention to maintain its identity and not become a commercial bank. The exchange clarified that it will not accept retail deposits or engage in fractional reserve banking.
Despite this regulatory advancement, Coinbase continues to operate under the New York Department of Financial Services, with existing licenses for its custody and market infrastructure services. The approval aligns with Coinbase's ongoing efforts to address challenges related to a digital asset market structure bill currently being debated in Congress.
In addition to regulatory developments, Coinbase is facing legal challenges regarding its prediction market services, which were introduced in January through a partnership with Kalshi. The company is pursuing legal action against several state gaming authorities, asserting that the Commodity Futures Trading Commission holds jurisdiction over these markets.