Coinbase Global Inc. (NASDAQ:COIN) announced on Thursday that it has received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a federally chartered national trust company. This approval is significant as it allows Coinbase to operate under federal regulatory oversight, ensuring uniformity in its custody and market infrastructure services. However, CEO Brian Armstrong emphasized that Coinbase is not transitioning into a commercial bank, as it will not accept retail deposits or engage in fractional reserve banking. This clarification is important, especially in light of comments from JPMorgan Chase & Co. CEO Jamie Dimon, who suggested that cryptocurrency companies offering rewards on stablecoin balances should face bank-like regulations. Coinbase has previously withdrawn its support for a cryptocurrency market structure bill due to provisions that would restrict such rewards. In the broader context, other cryptocurrency firms like Ripple Labs and Circle Internet Group Inc. have also applied for similar banking charters, although they await final approval. Following the announcement, Coinbase's stock rose by 2.22% in after-hours trading, indicating positive market reaction.