Coinbase Urges US Regulators to Allow Banks to Provide Crypto Services
Coinbase is advocating for US regulators to allow state-chartered banks to offer crypto custody and execution services. The exchange aims for clarity from authorities on the legality of banks serving crypto businesses.
Key points include:
- Coinbase sent a letter to the OCC, Federal Reserve, and FDIC requesting clear guidance.
- The exchange wants the OCC to withdraw an interpretive letter that complicates banks' entry into the crypto space.
- Coinbase argues that federal laws permit banks to provide crypto services but seeks explicit confirmation from regulators.
- Law firms supporting Coinbase's stance include Arnold & Porter Kaye Scholer, Cleary Gottlieb Steen & Hamilton, and Wilmer Cutler Pickering Hale & Dorr.
- Some banks, like BNY Mellon, are advancing crypto custody services, while the FDIC has pressured others to halt crypto activities.
- In June 2024, Coinbase sued the SEC and FDIC over alleged restrictions on digital asset companies’ banking access.
- Coinbase sees potential regulatory shifts with Donald Trump's presidency reinstatement starting January 20.
Coinbase's push aligns with its role in the burgeoning Bitcoin ETF market, providing custody for several funds launched last year.