Coinbase on Tuesday called on US banking regulators to clarify or update their stance on banks offering crypto services and partnering with digital asset companies.
The exchange aims to spur banks to partner with crypto companies, as these collaborations could accelerate the adoption and integration of digital assets into traditional financial systems.
“Instead of issuing clear, durable rules through the proper notice and comment process, banking regulators have chosen to issue opaque, inconsistent guidance, leaving crypto C&E service providers and banks in regulatory limbo,” Coinbase chief policy officer Faryar Shirzad wrote.
In a letter to regulators, Coinbase urged them to remove rules that unjustly limit banking services for crypto custody and execution service providers.
Additionally, it urges the removal of unlawful and inconsistent barriers that hinder C&E service providers from partnering with banks.
Specifically, the letter calls on the OCC, Federal Reserve and FDIC to confirm that banks can provide crypto custody and execution services either directly or via established third parties.
Ultimately, such stability is essential for creating a resilient and innovative financial system that serves all Americans, the exchange said.
They further emphasized that only well-established rules—not mere guidance—can offer the lasting legal clarity needed to endure political changes.
In a legal review shared with Coinbase, three leading law firms contended that the current restrictions on crypto banking services are illegal, as they arise from misinterpreted regulations rather than clear statutory mandates.
After years of what companies have decried as overreach through heavy enforcement actions, the industry saw this as an opportunity to reset the regulatory landscape.
The crypto industry donated millions to support Donald Trump’s return to the White House, aiming to push crypto regulation to the top of the new administration’s agenda.
At the same time, Trump, who has vowed to be a “crypto president,” appointed former PayPal executive David Sacks as his “White House AI & Crypto Czar.” With this move, the administration signals its intent to reshape US digital currency policy. Nevertheless, US bankers continue to approach cryptocurrencies with caution, reflecting a broader hesitancy within traditional financial circles.
Meanwhile, crypto firms claimed that US bank supervisors deliberately tried to cut them off from the traditional financial system.