Crypto exchange Coinbase has called on federal regulators to provide clear guidelines on banks offering digital asset services, arguing that unnecessary obstacles are hindering the growth of the crypto banking sector. In letters seen by Bloomberg, Coinbase specifically addresses the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors, and the Federal Deposit Insurance Corporation (FDIC). Coinbase has requested explicit confirmation that banks are allowed to offer crypto custody and trading services, either directly or through third-party providers. The exchange also emphasizes that while federal laws already permit banks to engage in crypto activities, regulatory uncertainty has deterred many institutions from entering the market. Coinbase’s chief policy officer, Faryar Shirzad, states, “We need clarity that banks can work with qualified third-party providers to serve their customers’ crypto needs.” In a separate development, Coinbase has received approval from the UK Financial Conduct Authority (FCA) to become the largest Virtual Asset Service Provider (VASP) in the United Kingdom. This registration solidifies Coinbase’s position as a major player in the UK’s digital assets landscape. Coinbase believes that the UK’s embrace of regulation in the crypto sector will contribute to economic freedom and benefit from the growth potential of this transformative technology.
