Cryptocurrency exchange Coinbase is pressing US regulators to confirm that banks are free to provide services to crypto businesses.
Coinbase sent a letter to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors and the Federal Deposit Insurance Corporation (FDIC), asking them to provide clarity on the status of banking services to crypto, Bloomberg reported on Feb. 4.
In the letter, Coinbase reportedly asked the OCC to withdraw an interpretive letter that “imposes a de facto application process for novel bank activities” and prevents banks from entering the crypto asset market.
The US-based exchange also asked the Fed and the FDIC to confirm that state-chartered banks are allowed to provide and outsource crypto custody and execution.
Coinbase wants banking regulators to confirm that banks are ready for crypto
According to Bloomberg, a separate letter from three law firms retained by Coinbase said that current federal laws already authorize banks to provide crypto services and work with third-party service providers like Coinbase.
Still, banking regulators need to confirm that’s the case, Coinbase reportedly said. The law firms writing the letters in support of Coinbase were Arnold and Porter Kaye Scholer, Cleary Gottlieb Steen and Hamilton, and Wilmer Cutler Pickering Hale and Dorr.
“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,” Coinbase chief policy officer Faryar Shirzad said.
Coinbase’s legal battle with FDIC: Community waits for changes under Trump
The role of US banks in serving the crypto industry has been a contentious issue.
While banks like BNY Mellon have been moving forward with plans to provide crypto custody services, some reports suggested that the FDIC has approached several US banks asking them to pause their crypto activities.
In June 2024, Coinbase filed lawsuits against the US Securities and Exchange Commission and the FDIC, alleging that the agencies made a “coordinated attempt to cut off digital-asset firms from essential banking services.”
Source: Paul Grewal
In the ongoing legal battle, Coinbase’s chief legal officer Paul Grewal reiterated the allegations in January 2025, arguing that the FDIC deliberately omitted some “pause letters” related to crypto in a Freedom of Information Act lawsuit.
Related: Coinbase accused of neglecting security, costing users up to $300M annually
With US President Donald Trump taking office on Jan. 20, the community is now waiting for positive changes in the US crypto ecosystem.
Coinbase, which has been deepening ties with the Trump administration, was among the firms that saw Trump’s presidential victory as a positive shift for crypto and economic freedom.
The company’s move to cement banking support of crypto custody and execution marks a meaningful development as the platform serves custody for many US Bitcoin exchange-traded funds, which started trading last year.
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