Coinbase Pursues Federal Oversight to Streamline Crypto Innovation and Compliance

Coinbase Global Inc. has formally applied for a national trust charter with the U.S. Office of the Comptroller of the Currency (OCC), a move that would place the crypto exchange under federal regulatory oversight and enable it to expand services such as payments and settlement without requiring state-by-state approvals. The application, announced on October 3, 2025, aligns with Coinbase's strategy to streamline regulatory compliance and enhance its institutional offeringstitle1^[1]. The company emphasized it has no intention of becoming a bank but seeks to leverage the charter to innovate within a clear regulatory frameworktitle12^[12].

The proposed charter would allow Coinbase to build on its existing custody business, offering services like crypto payments and asset management without seeking a full-service bank charter. Currently, Coinbase's custody operations are conducted through its New York-licensed Coinbase Custody Trust Company (CCTC), which operates under the state's BitLicense regime. A federal charter, however, would provide greater operational flexibility, particularly as stablecoin usage and institutional adoption of crypto continue to growtitle1^[1].

This move follows a broader trend of crypto firms seeking federal oversight. Ripple, Circle, Paxos, and BitGo have also submitted applications for national trust charters in recent monthstitle4^[4]. The OCC's recent rescission of a Biden-era rule requiring non-objection for crypto activities has reduced regulatory hurdles, according to Adam Shapiro of Klaros Group. "It was obviously a big deterrent to being able to do anything new," Shapiro noted, adding that the shift could accelerate applications from crypto-native firmstitle4^[4].

A federal trust charter would also simplify compliance for Coinbase, which currently navigates a patchwork of state-level licenses. For example, state trust charters often require redundant audits and lack universal reciprocity, complicating cross-jurisdiction operations. A single federal charter would consolidate oversight, reducing administrative burdens while maintaining high safety standardstitle4^[4]. This aligns with Coinbase's public commitment to "clear rules and the trust of our regulators and customers" to foster innovationtitle12^[12].

Industry observers highlight the strategic implications of Coinbase's application. Nathan McCauley, CEO of Anchorage Digital Bank-the first crypto firm to receive a national trust charter in 2021-stated that federal regulation provides "second to none" clarity for crypto firms. He urged others to follow Anchorage's path, arguing that federally chartered digital asset banks would benefit institutions, consumers, and the broader ecosystemtitle4^[4]. Meanwhile, Coinbase's move coincides with congressional efforts to draft a market-structure bill addressing crypto regulation, expected to undergo Senate markup by late October 2025title12^[12].

Coinbase's application reflects confidence in the evolving regulatory landscape. The company cited the July 2025 enactment of the GENIUS Act-President Trump's stablecoin regulatory framework-as a catalyst for industry growth. This law, coupled with the OCC's pro-crypto stance under Acting Comptroller Rodney Hood, has created a more favorable environment for crypto firms seeking federal legitimacytitle7^[7]. However, the process remains rigorous, requiring Coinbase to demonstrate financial stability, cybersecurity readiness, and compliance with anti-money laundering (AML) protocolstitle10^[10].