Coinbase is urging US regulators to allow banks to offer cryptocurrency services. As the largest custodian for US-based spot Bitcoin ETFs, Coinbase wants state-chartered banks to provide and outsource crypto custody and execution services. They are asking regulators to confirm that banks can legally serve crypto businesses.
In a letter to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), Coinbase requested clear guidance.
They want the OCC to withdraw a letter that complicates the approval process for banks entering the crypto space. Coinbase argues that this letter hinders banks from expanding into digital assets.
Coinbase also wants the Fed and FDIC to confirm that banks can manage crypto services and collaborate with third-party providers like Coinbase. Three law firms hired by Coinbase believe federal laws already allow banks to offer these services.
However, Coinbase insists that regulators need to make this clear. The law firms supporting Coinbase include Arnold & Porter Kaye Scholer, Cleary Gottlieb Steen & Hamilton, and Wilmer Cutler Pickering Hale & Dorr.
Faryar Shirzad, Coinbase’s chief policy officer, stressed the need for regulators to clarify that banks can work with third-party firms for crypto trading and exchange services.
The role of banks in the crypto world is a hot topic. Some banks, like BNY Mellon, have started offering crypto custody services. However, reports suggest that the FDIC has pressured some banks to halt their crypto activities.
In June 2024, Coinbase sued the SEC and FDIC, claiming they were limiting digital asset companies’ access to banking services. In January 2025, Coinbase’s chief legal officer accused the FDIC of omitting important documents in a lawsuit.
With Donald Trump returning to the White House, the crypto community is hopeful for changes. Coinbase believes that his presidency could positively impact the industry and financial freedom. Their push for clearer banking regulations is crucial as they play a significant role in the growing Bitcoin ETF market.
