Coinbase Urges U.S. Regulators to Unlock Banks' Crypto Potential
1min read Coinbase Urges U.S. Regulators to Remove Hurdles for Banks to Partner With Crypto Firms
Coinbase, one of the largest cryptocurrency exchanges in the U.S., has called on U.S. regulators to remove barriers that prevent banks from partnering with crypto firms. The company has sent letters to the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve, urging them to clarify regulatory guidance for banks that wish to work with crypto companies.
Coinbase argues that the current regulatory environment is hindering the growth of the crypto industry and preventing banks from providing essential services to crypto firms. The company believes that clearer guidance from regulators would encourage more banks to engage with the crypto sector, leading to increased innovation and consumer protection.
The letters, signed by Coinbase's chief legal officer, Paul Grewal, highlight the importance of banks in the crypto ecosystem. They emphasize that banks play a crucial role in facilitating transactions, providing custody services, and ensuring the stability of the crypto market. Coinbase argues that by removing regulatory hurdles, banks can better support the growth of the crypto industry while maintaining their own risk management practices.
Coinbase's call for regulatory clarity comes at a time when the crypto industry is facing increased scrutiny from U.S. regulators. The SEC, in particular, has been cracking down on crypto companies, alleging that many tokens are unregistered securities. Coinbase has been involved in several high-profile disputes with the SEC, including a lawsuit over its planned Lend product.
Despite the regulatory challenges, Coinbase remains optimistic about the future of the crypto industry. The company believes that by working together with regulators and banks, the crypto sector can grow and thrive, ultimately benefiting consumers and the broader economy.
