Coinbase Urges U.S. Regulators To Clear Path for Banks To Offer Cryptocurrency Services, Citing Legal Uncertainty and Pressure To Limit Crypto Ties

Coinbase has urged U.S. regulators to clarify guidelines allowing banks to offer cryptocurrency services. The exchange sent letters to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) asking them to confirm that banks can legally provide crypto custody and execution services. Coinbase argues that current laws permit such activities, but regulatory ambiguity has prevented banks from engaging in them.

From March 2022 to May 2023, the FDIC reportedly sent letters to banks instructing them to limit or halt crypto services. Some lawmakers allege that banks were pressured to sever ties with crypto firms. House Oversight Committee Chairman James Comer has claimed that the Biden administration influenced banks similarly to how it allegedly pressured social media platforms to censor content. Comer has called for an investigation into whether financial regulators were involved in a coordinated effort to "debank" crypto companies.

Coinbase filed lawsuits against the SEC and FDIC in June 2024, accusing them of collaborating to exclude crypto firms from banking services. In January 2025, Coinbase’s Chief Legal Officer Paul Grewal reiterated these allegations, asserting that the FDIC withheld key documents related to its communication with banks about crypto-related restrictions. Coinbase is set to testify before the Senate Banking Committee on "debanking," where lawmakers will question financial institutions about their policies toward digital asset companies.

The regulatory environment for crypto has changed under President Donald Trump, who took office in January 2025. His administration has rolled back policies that were seen as restrictive to crypto, including the repeal of an SEC rule requiring banks to classify crypto assets held in custody as liabilities. Trump also appointed David Sacks, a former PayPal executive, as the "White House AI & Crypto Czar," signaling a more supportive stance on digital assets.

Coinbase is the largest custodian for U.S.-based Bitcoin ETFs and has asked regulators to confirm that state-chartered banks can offer and outsource crypto custody services. The exchange claims that a 2020 OCC guideline has created an unofficial process discouraging banks from engaging in crypto-related activities. Coinbase has urged the OCC to withdraw this guidance and asked the Fed and FDIC to provide clear statements confirming banks' ability to work with third-party crypto service providers.

Three law firms representing Coinbase have argued that regulators have unlawfully restricted banks from offering crypto services. Coinbase’s Chief Policy Officer, Faryar Shirzad, stressed the importance of regulatory clarity, calling for clear guidelines allowing banks to collaborate with third-party providers to offer crypto trading and exchange services. As regulatory discussions unfold, the future of banks' involvement in the cryptocurrency sector remains uncertain.