Coinbase Receives a “Major Milestone” Approval in the Cryptocurrency Industry

US-based cryptocurrency exchange Coinbase announced a significant regulatory development that will strengthen its position in the financial sector.

The company announced that it has received conditional approval from the Office of the Comptroller of the Currency (OCC), a US banking regulator, to establish “Coinbase National Trust.”

The company stated that this development is a result of Coinbase’s long-standing regulatory compliance efforts, its relationships with regulators, and its belief that the cryptocurrency sector needs to evolve within the system. Coinbase Institutional Co-CEO Greg Tusar argued that the approval is a “significant milestone” in the industry.

Coinbase specifically emphasized that the license in question is not a banking license. The company stated that it will not accept individual deposits and will not engage in fractional reserve banking activities. The new structure primarily aims to create a regulatory framework for custody services and market infrastructure.

According to the statement, this conditional approval from the OCC will allow Coinbase to transition to a more consistent and unified federal regulatory environment for its custody services. This will provide the company with a more robust regulatory foundation for developing payment systems and new financial products for institutional clients.

On the other hand, Coinbase will continue its state-level operations. The company stated that it has been operating under a BitLicense issued by the New York Department of Financial Services (NYDFS) since 2015 and that this structure will be maintained.

Coinbase management stated that this development is critical not only for the company but also for the crypto sector in general, as it demonstrates that growth can occur within a regulatory framework.

*This is not investment advice.