The public-based publicly Coinbase Coinbase confirmed that applying for a US Federal Bank Charter.
In a statement sent to Cointelegraph, Coinbase said it was considered chasing a US Federal Bank Charter, according to a company spokesman.
“This is something that is actively considered by Coinbase but has not yet made a formal decision,” the spokesman told Cointelegraph.
Comments complies with recent reports suggesting that Coinbase and many other major crypto companies are planning to apply for US banking licenses. The Coinbase, Stablecoin Issuers Circle and Paxos, and Crypto Custodian BitGo are the other companies mentioned.
Coinbase did not make it clear to the cointelegraph why it was considered to be chasing a bank charter. However, a license may allow crypto companies to operate like traditional lenders, take deposits and make loans. Cointelegraph also reached other companies reportedly considering applying for a charter.
However, companies that obtain banking charters are subject to stricter reporting and regulatory administration. An example is anchorage digital, a crypto firm holding a federal bank charter.
Despite the firm who got a license, recent reports indicate that the US Department of Homeland Security’s El Dorado Task Force has Launched an investigation into Anchorage Digital Bank.
Related: Crypto companies looking for bank charters under Trump’s admin – Report
Many crypto companies are likely to apply
Reports also follow the US Comptroller’s Office of Money providing an initial approved condition For a US Bank Charter in Paxos back in 2021. Companies can now consider applying as US regulators take a softer stance on crypto regulation and integration of stablecoins into the wider financial system.
The change in stance can be seen at many levels of the US Federal Government. Federal Reserve Chair Jerome Powell has recently said that while digital assets are gaining primary adoption, establishing a The legal plot for stablecoins is a “good idea. “He also acknowledged that the crypto space has delivered a consumer’s use case that” may have a broad appeal. “
Related: ECB flags are risk of financially falling from US Crypto Push
Evolving us with stablecoin regulation
The service committee in financial US house Passed a Bill Backed Republican Stablecoin Framework Bill Earlier in April – the transparency of Stablecoin and liability for a better ledger economy (stable) gesture.
Another bill that moves the US legislative process is the guide and establishment of the National Innovation for US Stablecoins (Genius) Act. The Bills and genius are different from how they regulated The stablecoin industry in their current form.
The Genius Act was introduced first and The US Senate Banking Committee passed in mid -March. The stable law, on the other hand, emphasizes the federal administration, while the Genius Act is looking for a more flexible path that considers both state and federal regulations.
The stable law will enforce a two-year moratorium with the release of collateralized stablecoins supported by self-inspired digital assets. The bill will also require that Stablecoin reserves be held separately in business funds.
The Genius Act will establish a legal framework for stablecoin payments and the deprivation of US-based stablecoin providers in an attempt to strengthen global dollar dominance. The bill will also be enhanced Anti-Money Laundering (AML) Care, Reserve and Liquidity standards and penalty checks. It classifies those who provide stablecoin as financial institutions.
Magazine: Coinbase and Base: Does crypto become traditional finance 2.0?
