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Coinbase considering applying for US banking license

US-based publicly traded crypto exchange Coinbase confirmed that it is considering applying for a US federal bank charter.

In a statement sent to Cointelegraph, Coinbase said it is considering pursuing a US federal bank charter, according to a company spokesperson.

“This is something Coinbase is actively considering but has not made any formal decisions yet,” the spokesperson told Cointelegraph.

Coinbase, Banking, Banks, Circle, BitGo, Paxos, Stablecoin
Coinbase in-office photo. Source: Coinbase

The comments follow recent reports suggesting that Coinbase and multiple other major crypto firms were planning to apply for US banking licenses. Coinbase, stablecoin issuers Circle and Paxos, and crypto custodian BitGo were the other firms mentioned.

Coinbase did not clarify to Cointelegraph why it is considering pursuing a bank charter. Still, a license could potentially allow crypto firms to operate like traditional lenders, taking deposits and making loans. Cointelegraph also reached out to the other firms reportedly considering applying for a charter.

Still, firms that obtain banking charters are subject to stricter reporting and regulatory oversight. One example is Anchorage Digital, a crypto firm holding a federal bank charter.

Despite the firm obtaining the license, recent reports indicate that the US Department of Homeland Security’s El Dorado Task Force has launched an investigation into Anchorage Digital Bank.

Related: Crypto companies seeking bank charters under Trump admin — Report

Many crypto firms are likely to apply

The reports also follow the US Office of the Comptroller of the Currency granting a preliminary conditional approval for a US bank charter to Paxos back in 2021. Firms may now be considering applying as US regulators take a softer stance on crypto regulation and integrating stablecoins in the broader financial system.

The change in stance is visible at multiple levels of the US federal government. Federal Reserve Chair Jerome Powell recently said that as digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea.” He also recognized that the crypto space delivered a consumer use case that “could have wide appeal.”

Related: ECB flags risk of financial contagion from US crypto push

Evolving US stablecoin regulation

The US House Financial Services Committee passed a Republican-backed stablecoin framework bill earlier in April — the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.

Another bill that is moving through the US legislative process is the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The STABLE and GENIUS bills differ in how they regulate the stablecoin industry in their current form.

The GENIUS Act was introduced first and passed the US Senate Banking Committee in mid-March. The STABLE Act, on the other hand, emphasizes federal oversight, while the GENIUS Act seeks a more flexible path that considers both state and federal regulations.

The STABLE Act would enforce a two-year moratorium on issuing collateralized stablecoins that are backed by self-issued digital assets. The bill would also require that stablecoin reserves be held separate from business funds.

The GENIUS Act would establish a legal framework for stablecoin payments and leverage US-based stablecoin issuers in an attempt to reinforce the dollar’s global dominance. The bill would also enhance Anti-Money Laundering (AML) safeguards, reserve and liquidity standards and sanctions checks. It classifies stablecoin issuers as financial institutions.

Magazine: Coinbase and Base: Is crypto just becoming traditional finance 2.0?

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US Senate committee advances Trump’s ‘crypto-friendly’ Fed pick

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US Senate committee advances Trump’s ‘crypto-friendly’ Fed pick

US Senate committee advances Trump’s ‘crypto-friendly’ Fed pick

Stephen Miran has made few public statements on crypto or blockchain, but signaled in interviews before joining the Trump administration that he would support digital assets.

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Who is Peter Mandelson and what do we know about his relationship with Jeffrey Epstein?

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Who is Peter Mandelson and what do we know about his relationship with Jeffrey Epstein?

Labour veteran Lord Peter Mandelson is facing his biggest controversy to date over his relationship with paedophile sex trafficker Jeffrey Epstein.

A message from the UK ambassador to Washington featured in a “birthday book” for Epstein for his 50th birthday in 2003 – three years before allegations against the disgraced financier became public.

But who is Lord Mandelson, what did he put in his message to Epstein, and what has he said about their relationship?

‘The Prince of Darkness’

Lord Mandelson, 71, holds what is considered the most glittering diplomatic post in the UK government, the perks of which include the luxurious ambassador’s residence, a mansion designed by top architect Sir Edwin Lutyens.

Sir Keir Starmer said Lord Mandelson, who served in both Tony Blair and Gordon Brown’s governments, brought “unrivalled experience to the role” and has since credited him with helping build UK-US relations in a tricky political climate with Donald Trump at the helm.

Starmer and Mandelson talk in Washington in February. Pic: AP
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Starmer and Mandelson talk in Washington in February. Pic: AP

Lord Mandelson was already notorious among the British public, having earned himself a reputation for being a spin doctor when he helped propel Mr Blair to leader of the Labour Party in 1994, in what was seen as a betrayal by his close ally Mr Brown.

He was largely seen as the mastermind behind the birth of New Labour, and would berate newspaper editors when unfavourable stories were written by their political journalists, eventually earning him the nickname “the Prince of Darkness”.

He had to resign from Mr Blair’s cabinet twice, first over an undeclared bank loan and then over intervening in a passport application by a top Indian businessman.

Blair and Mandelson in 2000. Pic: Paul Faith/PA
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Blair and Mandelson in 2000. Pic: Paul Faith/PA

Yet it was Mr Brown who gave him a spectacular political comeback, making him business secretary with a peerage in 2008 before making him first secretary of state a year later – a role he kept until Labour’s election defeat in 2010.

Lord Mandelson, who was also Brussels commissioner from 2004 to 2008, is credited by supporters with having top trade experience and networking abilities, and has even been endorsed by UK Reform leader Nigel Farage, who has called him a “very clever man”.

What was in Mandelson’s birthday message to Epstein?

Files from the 2003 birthday book compiled for Epstein by his co-conspirator Ghislaine Maxwell show a birthday note from Lord Mandelson, who refers to Epstein as “my best pal”.

It begins with him appearing to reminisce about the first time he met Epstein, before alluding to how the financier would often leave one alone with some “interesting friends to entertain”.

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The messages inside Epstein’s ‘birthday book’

It is not clear what was meant by these so-called “interesting friends”, but the line is accompanied by an image of two people with their faces obscured or redacted.

The note references Epstein “taking you by surprise… in one of his glorious homes he likes to share with his friends (yum yum)”.

“Wherever he is in the world, he remains my best pal!” Lord Mandelson wrote.

A picture of Epstein and Mandelson in the 'birthday book'. Pic: US House Oversight Committee
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A picture of Epstein and Mandelson in the ‘birthday book’. Pic: US House Oversight Committee

Pictures of Lord Mandelson appear on the pages, which include an image of a tropical island.

Lord Mandelson was one of many contributors to the book, which was made public for the first time on 9 September after being published by a congressional committee in Washington.

How has Mandelson responded?

Reacting after the book’s release, Lord Mandelson told The Sun: “I find them very embarrassing to see and to read, but they were written before he was indicted.”

He said he sympathised with Epstein’s victims and that he “very, very deeply” regretted continuing to associate with the paedophile for “far longer than I should have done”.

Lord Mandelson said he “fell for and accepted assurances” from Epstein, who he described as a “charismatic criminal liar”.

He said he never saw any “wrongdoing” or criminal activity while he associated with Epstein.

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Lord Mandelson ‘regrets’ Epstein link

Report claims Mandelson stayed at Epstein’s flat while he was jailed

Lord Mandelson’s links to Epstein were first scrutinised in a report by JP Morgan bank, filed in a New York court in 2019.

Epstein, who killed himself while awaiting trial on charges of sex trafficking minors in August 2019, had previously served an 18-month sentence after pleading guilty to procuring a person under the age of 18 for prostitution.

Read more:
Epstein questions at worst moment for Lord Mandelson
Analysis: The disconnect between Mandelson’s claim and his letter

The report suggested that Lord Mandelson stayed at Epstein’s Manhattan flat while he was serving that sentence, noting that Epstein wrote to his private banker on 17 June 2009: “Peter will be staying at 71st over weekend…”

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From May: Mandelson – ‘I wish I never met Epstein’

In May this year, Sky News asked Lord Mandelson if he did stay at Epstein’s flat, to which he replied: “I’m not answering any questions about him. My knowledge of him is something I regret, I wish I’d never met him in the first place.”

Asked why he had an association with Epstein whilst he was in jail, Lord Mandelson replied: “Why did many people meet him? He was a prolific networker. And I wish I’d never met him in the first place.”

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Starmer insists he has confidence in Mandelson as relationship with Epstein faces scrutiny

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Starmer insists he has confidence in Mandelson as relationship with Epstein faces scrutiny

Conservative leader Kemi Badenoch has called for Lord Peter Mandeslon to be sacked as ambassador to the United States over his friendship with paedophile financier Jeffrey Epstein.

Lord Mandelson faced questions on Tuesday after it emerged he had referred to Epstein as his “best pal” in a birthday message he wrote for the convicted sex offender in 2003.

Further allegations were made by The Telegraph overnight, claiming Epstein had brokered a deal with Lord Mandelson over the £1bn sale of a UK taxpayer-owned banking business in 2010. This was reportedly negotiated while Lord Mandelson was the business secretary, and only months after Epstein had been released from prison.

Peter Mandelson. Pic: Reuters
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Peter Mandelson. Pic: Reuters

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There were also claims that Lord Mandelson stayed in Epstein’s New York home while he was in prison for soliciting a minor in 2008/9.

Lord Mandelson also wrote supportive messages to Epstein while he was facing charges in 2008, according to leaked emails seen by The Sun Newspaper.

The US ambassador is said to have told Epstein: “I think the world of you and I feel hopeless and furious about what has happened”.

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He is also said to have encouraged Epstein to be “big” and “strong”.

During Prime Minister’s Questions on Wednesday, Ms Badenoch asked Sir Keir whether he has confidence in the ambassador.

The prime minister insisted that he does, saying Lord Mandelson is “playing an important role in the UK-US relationship”.

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From May: Mandelson – ‘I wish I never met Epstein’

Referring to Epstein, the prime minister said: “He was a despicable criminal who committed the most heinous crimes and destroyed the lives of so many women and girls.

“The ambassador has repeatedly expressed his deep regret for his association with him. He’s right to do so.”

Sir Keir also claimed that “full due process” was followed in the appointment of Lord Mandelson “as would be expected”.

In an interview with The Sun, Lord Mandelson said he regrets “very much that I fell for his lies… and accepted assurances he had given me about his indictment”, which saw Epstein jailed in 2008.

Lord Mandelson said: “He’s a charismatic, criminal liar we now see, and I regret very much indeed.

“I felt it like an albatross around my neck since his death in 2018 or 2019, whenever it was. I feel a tremendous sense of regret.”

Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP
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Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP

This regret, the diplomat said, is not only that he met Epstein in the first place, but that he “continued that association” and took at “face value the lies that he fed me”.

He added: “I can’t rewrite history. What I can do is express my profound sympathy for those who treated by him.”

Lord Mandelson and No 10 have both been contacted for comment on the latest allegations.

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