Coinbase Urges U.S. Banks to Embrace Crypto, Calls for Clearer Regulations

Coinbase, a leading cryptocurrency exchange, has been actively advocating for clearer regulatory guidance on cryptocurrency services from U.S. banking regulators. The company has expressed its frustration with the Comptroller of the Currency's recent policies, which restrict banks from offering crypto services to customers. Coinbase believes that banks should be able to provide crypto storage and trading options through their platforms to benefit from crypto transactions.

Coinbase has called for more transparent and autonomous regulatory guidance to enable banks to collaborate with third-party providers and offer exchange and crypto trading services. The company has requested interference from the Federal Reserve and the FDIC to support chartered banks in initiating cryptocurrency transactions, execution management, and crypto custody outsourcing.

Coinbase has criticized U.S. bank regulators for their decade-long prevention of banks from dealing in crypto, calling the rules non-democratic. Faryar Shirzad, Coinbase's Chief Policy Officer, has stated that banks could benefit from more transparent regulations. The crypto industry played a significant role in supporting Donald Trump's presidential campaign, with millions of dollars invested in his initiatives. However, crypto analysts argue that the government is overreaching and lacks regular working autonomy.

The U.S. Securities and Exchange Commission (SEC) created a task force in January to test a regulatory framework for accommodating crypto assets on the exchange. The regulators can modify the U.S. policies on any kind of digital currency, allowing bankers to take calculated risks and investors to be more fluent in handling crypto.