Key Points:
- Coinbase urges regulators to allow banks to provide crypto services
- Calls for removal of restrictive policies blocking banking access
- Legal battle with FDIC intensifies amid hopes for policy shifts
Coinbase Urges Regulators to Remove Barriers for Crypto Banking
Coinbase, the largest custodian for U.S.-based spot Bitcoin ETFs, is urging regulators to clarify the role of banks in offering crypto-related services. The exchange is calling for greater freedom for state-chartered banks to provide and outsource crypto custody and execution services.
In a letter sent to key financial regulators—including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC)—Coinbase is pushing for clear guidelines on banking services for crypto firms, according to a Bloomberg report on Feb. 4.
Coinbase’s Demands to Regulators
The letter specifically asks the OCC to revoke a previous interpretive ruling that effectively imposes an application process on banks before they can engage in crypto-related activities. Coinbase argues that this policy prevents banks from freely entering the crypto asset market.
Additionally, the exchange is requesting confirmation from the Federal Reserve and FDIC that state-chartered banks are legally allowed to provide and outsource crypto custody and execution services.
Coinbase’s chief policy officer, Faryar Shirzad, emphasized the importance of regulatory transparency, stating:
“It’s important for regulators to make clear that banks can work with third-party providers in providing trading and exchange services to their customers.”
Legal Battle with FDIC and the Fight for Banking Access
Coinbase has been locked in a legal battle with U.S. regulators, alleging that the FDIC and SEC have coordinated efforts to restrict digital-asset firms from essential banking services. In June 2024, the exchange filed lawsuits against both agencies, accusing them of pressuring banks to halt crypto-related activities.
The dispute escalated further in January 2025 when Coinbase’s chief legal officer, Paul Grewal, accused the FDIC of deliberately withholding documents related to its alleged anti-crypto stance.
Hope for Change Under Trump Administration
With President Donald Trump’s recent inauguration on Jan. 20, the crypto industry is closely watching for potential regulatory shifts. Coinbase, which has been strengthening its ties with the Trump administration, sees the new leadership as a potential turning point for crypto-friendly policies.
As Coinbase continues to advocate for clearer banking support for crypto, the company remains a crucial player in the digital asset space, especially as it serves as the custodian for many U.S. Bitcoin exchange-traded funds (ETFs) that launched last year.
Will U.S. regulators heed Coinbase’s call for change? The industry is waiting for an answer.
