COINBASE (COIN) said on Friday that it has applied for a national trust charter with the US Office of Comptroller of the Currency (OCC), a step that would put the company under federal legislative supervision if approved.
Charter allows Coinbase to build on its existing custody by offering services such as payments and settlement without applying for a charter as a bank with full service.
“Coinbase does not intend to become a bank,” Greg Tusar, vice president of institutional product at Coinbase, said in a blog post. “It is our regular belief that clear rules and our regulators and customers’ trust allow Coinbase the opportunity to safely innovate while ensuring proper supervision and security.”
Today, the US Crypto Exchange’s most important regulated custody service is run through Coinbase Coar (Cent Company (CCTC), licensed under New York State’s Bitlicense -regime. This framework introduced in 2015 was one of the earliest regulatory models at the state level of Krypto in the US
A federal confidence charter would give the company more flexibility to launch new financial services such as crypto payments without needing state-by-state approvals.
Coinbase’s movement follows a number of cryptic companies, including Circle, Ripple and Paxos, applying for federal supervision this year.
READ MORE: US SEC taking the tentative steps to expand the universe of crypto -preserving to the State Trusts
