Summary: Coinbase is telling U.S. regulators to chill out and let the banks offer crypto services. The exchange sent letters to the OCC, Federal Reserve, and FDIC to ask them to make crystal clear that banks can legally hold, trade, and partner with crypto companies.Right now, there’s too much red tape, and Coinbase says it’s unfair.
Coinbase is particularly calling out an OCC rule that acts like a secret approval process for banks wanting to get into crypto. They want it gone. The exchange also wants the Fed and FDIC to confirm that state-chartered banks can legally trade and custody crypto for customers. Their chief policy officer, Faryar Shirzad, argues that banks should be able to work with third-party providers to offer crypto services just like they do with traditional finance.
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Legal heavyweights back Coinbase on this. Three major law firms—Arnold & Porter Kaye Scholer, Cleary Gottlieb, and WilmerHale—say banks already have the right to offer crypto services, but regulators are being vague. Meanwhile, Congress is looking into “Operation Choke Point 2.0,” where regulators allegedly pressured banks to cut off crypto firms. Coinbase claims the FDIC even told banks to “pause” crypto-related activities behind closed doors.
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With Trump back in office, Coinbase is betting big on friendlier policies. Executives will testify before Congress this week, hoping lawmakers will step in and give banks the green light to fully embrace digital assets.
