Coinbase News: Company Pushes Back Against OCC Stablecoin Rules

Key Insights:

• OCC stablecoin rules face pushback as Coinbase news draws attention to new filing.
• Coinbase says that OCC stablecoin limits could reduce competition and market flexibility.
• The Coinbase trust charter expands federal oversight for crypto custody infrastructure.

The latest Coinbase news gained attention after the company formally challenged proposed stablecoin rules issued by the Office of the Comptroller of the Currency. The filing came shortly after Coinbase received conditional approval to establish Coinbase National Trust Company under federal oversight.

Coinbase argued that several proposed requirements for permitted payment stablecoin issuers (PPSIs) could restrict competition. They could impose unnecessary limits on stablecoin businesses operating in the United States.

Faryar Shirzad, Coinbase’s Chief Policy Officer, confirmed the filing in a public statement. He said the company supports broader adoption of GENIUS Act stablecoins and continued U.S. leadership in digital innovation.

However, Coinbase also stated that the OCC should avoid introducing conditions not outlined in the GENIUS Act framework.

According to the filing, Coinbase opposed the OCC’s proposed restrictions on stablecoin rewards. The company argued that de minimis requirements and “rebuttable presumption” rules tied to yield arrangements could harm consumers. It also stated that reserve asset requirements should reflect actual risk instead of arbitrary thresholds.

The company further criticized proposed run-risk limits linked to stablecoin reserves. Coinbase said the measures failed to account for the liquidity of reserve assets and could create instability rather than reduce risk.

The filing also opposed limits on white-label stablecoins and multi-issuance models. It argued that such restrictions could reduce competition across the sector.

Coinbase News Emerges After OCC Trust Charter Approval

The filing followed another major Coinbase news development involving federal oversight. Coinbase recently received conditional approval from the OCC to establish Coinbase National Trust Company. The approval allows the company to move forward with a federally supervised trust structure focused on digital asset custody services.

Coinbase stated that the charter does not permit commercial banking activities. The company said it will not accept retail deposits or participate in fractional reserve banking. Instead, the trust structure will focus on custody and institutional market infrastructure services already offered through its digital asset operations.

Under the approval framework, Coinbase must satisfy additional regulatory conditions before the charter becomes fully operational. The company stated that the structure could create more consistent federal standards for digital asset custody across multiple jurisdictions.

Coinbase also stated the trust company framework may support future payments-related products while remaining within trust company oversight rules. It described the approval as part of its long-term regulatory engagement efforts in the United States.

Stablecoin and GENIUS Act Debate Expands

The latest Coinbase news arrives as federal regulators continue reviewing crypto-related financial activities. Over the past year, the OCC has updated guidance covering digital asset custody, blockchain infrastructure, and Stablecoin services linked to the banking system.

Meanwhile, crypto companies have sought federal trust charters rather than wait for state licensing systems. There has been an increasing acceptance of trust structures amongst firms looking to provide regulated custody services, but not accept deposits.

The OCC has also had applications from crypto-native companies requesting direct federal oversight. Regulators are still studying the relationship between Stablecoin businesses and U.S. payment systems and settlement.

Assuming the transaction closes, Coinbase National Trust Company would join a handful of companies in the crypto industry directly supervised by the federal government as a trust.

The post Coinbase News: Company Pushes Back Against OCC Stablecoin Rules appeared first on The Coin Republic.