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Coinpaprika 2025-02-04 14:32:59

Coinbase Pushes US Regulators to Let Banks Offer Crypto Services

Coinbase is pushing US regulators to clear the way for banks to offer crypto services. The exchange, which is the biggest custodian for US-based spot Bitcoin ETFs, is asking authorities to let state-chartered banks provide and outsource crypto custody and execution services . Coinbase wants regulators to confirm that banks can legally serve crypto businesses. In a letter sent to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), Coinbase called for clear guidance. The exchange asked the OCC to withdraw an interpretive letter that complicates the approval process for banks wanting to enter the crypto space. This, Coinbase argues, effectively blocks banks from expanding into digital assets. The exchange also urged the Fed and FDIC to confirm that banks can handle crypto services and work with third-party providers such as Coinbase. According to Bloomberg, three law firms hired by Coinbase stated that federal laws already permit banks to offer these services. However, Coinbase believes regulators must explicitly confirm this. The firms supporting Coinbase’s stance include Arnold & Porter Kaye Scholer, Cleary Gottlieb Steen & Hamilton, and Wilmer Cutler Pickering Hale & Dorr. Coinbase’s chief policy officer, Faryar Shirzad, emphasized that regulators must clarify that banks can collaborate with third-party firms to provide crypto trading and exchange services. The role of banks in crypto remains a hot topic. Some, like BNY Mellon, have moved forward with crypto custody services. However, reports indicate that the FDIC has pressured some banks to pause their crypto activities . In June 2024, Coinbase sued the US Securities and Exchange Commission (SEC) and the FDIC, accusing them of working together to limit digital-asset companies' access to banking services. In January 2025, Coinbase’s chief legal officer, Paul Grewal, claimed the FDIC deliberately left out key documents in a Freedom of Information Act lawsuit regarding these so-called “pause letters.” With Donald Trump returning to the White House on January 20, the crypto community is watching for changes. Coinbase, which has strengthened its ties with the Trump administration, views his presidency as a positive shift for the industry and financial freedom. Coinbase’s push for clearer banking regulations comes as it plays a critical role in the growing Bitcoin ETF market, providing custody for many of the funds launched last year.

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