Coinbase Considers Taking the Leap into Bankdom – What Could Go Wrong?

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Well, it seems like the US-based crypto exchange Coinbase has been hit by an epiphany. The publicly traded company confirmed that it’s contemplating—yes, you heard it right—considering applying for a US federal bank charter. Big plans, huh? 🙄

In a stunningly ambiguous statement sent to CryptoMoon, Coinbase’s spokesperson said they’re “actively considering” the idea. But don’t get too excited, folks—no official decisions have been made yet. No, they’re not opening a bank just yet. So, hold your horses. 🐴

Apparently, Coinbase isn’t the only one in the crypto world dreaming of turning into a bank. According to some juicy reports, a whole bunch of crypto bigwigs—including stablecoin issuers Circle and Paxos, and crypto custodian BitGo—are eyeing this glittering banking license too. It’s like a game of musical chairs, but with digital assets. 🎶

Coinbase, however, didn’t feel like spilling the beans on why exactly it wants to pursue a bank charter. Perhaps they’re just sick of playing the crypto game and fancy themselves as the next JPMorgan? Whatever the reason, a banking license would let them operate like any other bank, taking deposits and making loans. But, you know, with the usual crypto flair. 💸

On the flip side, becoming an actual bank means stricter rules and reporting. Fun, right? Take Anchorage Digital, for example: they got their shiny bank charter but are now under investigation by the US Department of Homeland Security. Because why not? Investigations are all the rage these days. 🚔

So, Is Everyone Going Bankrupt—Oops, I Mean Bank?

We reached out to the other crypto firms supposedly thinking about applying for a bank charter. But, surprise surprise, Coinbase was the only one to admit it without outright denying the reports. 🙄

Let’s not forget the big news from 2021 when the US Office of the Comptroller of the Currency gave a thumbs-up to Paxos for a preliminary conditional approval for their bank charter. The crypto industry’s looking at the US regulators like, “Okay, we get it. You’re cool with us now. Sort of.” 😏

The shift in attitude is real, folks. Jerome Powell, the Federal Reserve Chair, recently said digital assets could have wide appeal, and that establishing a legal framework for stablecoins might be a “good idea.” Let that sink in for a moment. A *good idea* from the Fed? Amazing! 💡

Stablecoins and Their Own Drama

The US House Financial Services Committee, backing the Republicans, passed the oh-so-creative Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. Catchy, huh? It’s like they were aiming for the most bureaucratic name possible. 🤦‍♂️

Meanwhile, there’s another bill creeping its way through the legislative process called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Spoiler alert: it’s not about creating a stablecoin genius; it’s about regulating stablecoins. The STABLE and GENIUS acts couldn’t be more different if they tried, though. STABLE wants to slap federal oversight everywhere, while GENIUS is the cool, flexible sibling. 😎

The STABLE Act even goes so far as to enforce a two-year moratorium on issuing collateralized stablecoins backed by self-issued digital assets. Because, why not add more rules to the already crowded table? 📝

Meanwhile, the GENIUS Act isn’t messing around. It’s all about making stablecoin payments legally legit while shoring up the US dollar’s reign on the global stage. There are also tougher Anti-Money Laundering (AML) rules, reserve requirements, and liquidity standards—because we all know that crypto needs just a little more oversight. 🕵️‍♂️

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2025-04-22 14:13