Coinbase CLO: Bank Groups Opposing Trust Charter Bid Engaging in 'Protectionism'► https://t.co/b9ts2VE5LS https://t.co/b9ts2VE5LS ...

Core Insights - Coinbase is considering applying for a federal bank charter, joining other crypto firms like Circle, Ripple, and Paxos in seeking a trust charter [3][5] - Currently, Anchorage Digital is the only crypto firm with a trust bank charter, which was approved by the OCC in January 2021 [4] - A trust bank charter has a limited scope compared to a traditional bank charter, focusing on asset management and trust administration without the ability to lend or take insured deposits [5] Company Developments - Coinbase has $425 billion in assets on its platform as of June 30, indicating its significant market presence [5] - The OCC charter is expected to streamline oversight for new offerings and foster innovation in integrating digital assets into traditional finance [6] - Coinbase aims to launch new products beyond crypto custody, including payments and other services, with regulatory clarity if the charter is secured [7] Industry Reactions - Bank trade groups have expressed concerns about the trust charter applications from crypto firms, labeling them as risky and potentially destabilizing to consumer confidence in the banking system [6][7] - The Independent Community Bankers of America has urged the OCC to postpone decisions on these applications, highlighting the perceived risks associated with uninsured deposit-like accounts [6][7]

Regulatory Landscape - Paxos has applied to the OCC to convert its New York State trust charter into a national trust charter [1] - Approval would bring Paxos under federal oversight in the U S [1] - Paxos holds existing regulatory licenses in Europe (FIN-FSA), Singapore (MAS), and Abu Dhabi (FSRA) [1]