Coinbase Urges U.S. Regulators to Clarify Crypto Banking Rules

Coinbase, a leading cryptocurrency exchange, has called on U.S. banking regulators to clarify rules for crypto banking services. 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 urged these agencies to provide explicit guidance on the banking status for the crypto industry.

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 Trump administration, the crypto community is hopeful for positive changes in the U.S. crypto ecosystem. Coinbase, which has deepened its ties with the Trump administration and is the largest custodian of a U.S. Bitcoin spot ETF, is pushing for regulators to clearly state that banks can collaborate with third-party providers to offer crypto transaction services to customers.

Coinbase's Chief Policy Officer, Faryar Shirzad, stated: "For regulators, it is necessary to clearly state that banks can collaborate with third-party providers to offer crypto transaction services to customers." This clarification would help banks better understand their regulatory obligations and encourage more engagement with the crypto industry.