Coinbase Urges U.S. Regulators for Crypto Banking Clarity

Coinbase, a leading cryptocurrency exchange, has taken a significant step in advocating for the crypto industry by urging U.S. regulatory agencies to provide clarity on banking services for cryptocurrency companies. In a letter sent to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC), Coinbase requested the issuance of a Cryptocurrency Industry Banking Clarity Report.

Serving the crypto industry has long been a contentious issue for U.S. banks. While federal law already authorizes banks to provide crypto services and partner with third-party providers like Coinbase, some banks have been hesitant to engage in the sector due to regulatory uncertainty. In June 2024, Coinbase filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the FDIC, alleging that these agencies were attempting to "quarantine crypto asset companies from basic banking services."

With the incoming administration of former U.S. President Donald Trump, the crypto community is hopeful for positive changes in the U.S. crypto ecosystem. Coinbase, as the largest custodian of a U.S. Bitcoin spot ETF, has been deepening its ties with the Trump administration. Coinbase's Chief Policy Officer, Faryar Shirzad, stated that it is necessary for regulators to clearly state that banks can collaborate with third-party providers to offer crypto transaction services to customers.

Coinbase's latest move comes as the House Oversight Committee investigates Operation Choke Point 2.0, examining alleged regulatory actions limiting banking access for crypto firms. Coinbase's legal chief, Paul Grewal, and CEO of MARA Holdings, Fred Thiel, are scheduled to testify before the Subcommittee on Oversight and Investigations of the U.S. House Financial Services Committee on Thursday regarding the alleged systematic debanking of crypto firms under the Biden administration.

Coinbase is urging U.S. banking regulators to revise their stance on crypto services, pushing for changes that would allow banks to provide crypto custody, trading services, and partnerships with digital asset companies. The crypto exchange recently sent a letter to the OCC, Federal Reserve Board of Governors, and FDIC, requesting the OCC to withdraw an interpretive letter that Coinbase claims creates a de facto application process preventing banks from entering the digital asset market.

The company is seeking formal confirmation from the