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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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Plaid Cymru leader was ‘turned down’ for meeting with PM, he claims

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Plaid Cymru leader was 'turned down' for meeting with PM, he claims

Calls for a meeting with Prime Minister Sir Keir Starmer have been snubbed by No 10, the leader of Plaid Cymru has told Sky News.

Rhun ap Iorwerth, who has served as leader of the Welsh nationalist party since June 2023, is looking likely to become Wales’s first minister next May, but when he asked to meet with Sir Keir after his election last year, he says he was turned down.

Speaking with Sky News’ political correspondent Liz Bates, Mr ap Iorwerth said he had “never” had a conversation with the prime minister but it was “not because I haven’t tried”.

He added: “When I contacted the prime minister to ask for a meeting, after his election last year, I was turned down and it was passed on to the Secretary of State for Wales.

“People can read into that what they want.

“I’ve spoken very openly about wanting to have a constructive relationship with the UK prime minister.”

The former journalist said in his reporting days he had not interviewed Sir Keir and now, in politics, their “paths had never crossed” but he said he felt it was “important”.

More on Eluned Morgan

“I have certainly asked if we could meet. And that is certainly something that I would still love to happen,” he said.

Mr ap Iorwerth said a conversation would be key because if he became Welsh first minister, there would be “serious negotiations on serious issues around funding for Wales – on investing in infrastructure in Wales, on the future of how we’re able to influence and use our natural resources in Wales”.

“So I want to have that constructive relationship,” he said.

In an apparent nod to current Labour first minister Eluned Morgan, Mr ap Iorwerth said Sir Keir would be in “no doubt” that his loyalty “would always be to the people of Wales”.

He said: “I won’t be pulling my punches in order to save the Labour Party embarrassment.

“I’ll be really laying out what’s in the interest of Wales. And that’s, I think, a fundamentally different relationship. But it has to be, and I want it to be, a constructive one.”

The next Senedd election is May 2026, when voters in Wales will elect 96 members for the first time – an increase of more than 50% from the current 60.

Welsh politics has traditionally been dominated by Labour.

Labour’s grip on Wales sliding?

Welsh Labour MPs have been the largest group sent to Westminster in every general election since 1922 – and the party has been in government in the country for more than a quarter of a century.

But if the polls are accurate, Labour’s long-standing grip on politics in Wales is fading.

Plaid Cymru and Reform UK are running almost neck and neck, while Labour trails significantly.

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Rhun ap Iorwerth: Is the man on the brink of power in Wales ready to govern?

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Rhun ap Iorwerth: Is the man on the brink of power in Wales ready to govern?

Politics has always been unforgiving, but never more so than now.

So, speaking to the man who is on the brink of power in Wales, raises the question of whether he is really ready for what’s he’s taking on.

Plaid Cymru leader Rhun ap Iorwerth is a former journalist so he knows how to present himself, but much bigger challenges are coming, and fast.

At next May’s Senedd elections, he is narrowly on course to become first minister, according to current polls.

Mr ap Iorwerth visits local businesses on Ystrad Mynach high street. Pic: PA
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Mr ap Iorwerth visits local businesses on Ystrad Mynach high street. Pic: PA

But before that he faces the same battle as leaders across the UK – how to beat Reform, who are running his party very close.

It’s not clear he has a different strategy to any other politician, as he condemns their politics as divisive and tries instead to present a positive vision of unity and more public spending.

Maybe he has a better chance than most though as he can at least point the finger of blame firmly elsewhere – Westminster.

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That leads to his second big problem of how to get anything from a Labour prime minister when you lead an opposition party.

In his conference speech he criticised Welsh Labour leader Eluned Morgan for being unable to influence Sir Keir Starmer.

But Mr ap Iorwerth later revealed to Sky News that he’s never even spoken to the prime minister, and when a meeting was requested he was offered the Secretary of State for Wales instead.

If he does become first minister he will have to walk the difficult line of fostering a privately productive relationship while still criticising in public.

Looming over all of this is the question of Welsh independence.

Read more from Sky News:
Corbyn and Sultana have ‘patched things up’ – but what really happened?
The 40 jobs ‘most at risk’ of AI – and 40 it can’t touch

It has been the party’s driving force for a century but it’s now been shelved for at least one term in office.

Mr ap Iorwerth says it’s because they need to lay the groundwork, have a consultation on the process and bring the public with them.

The truth is that the Welsh economy is so reliant on the rest of the UK that separation would be difficult, to say the least.

Figuring out how to keep pursuing their core purpose while acknowledging that reality could become corrosive.

Having said all that, he has a sense of momentum and purpose that many other politicians are lacking, driven by a strong sense of Welsh identity.

If he does get over the line in May, it will be this feeling that propels him, and he will need to draw on it again and again as he faces the tough times ahead.

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Politics

US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

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US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

The provision in the National Defense Authorization Act could create even more economic pain for the crypto mining industry if passed.

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