Coinbase approaches US banking regulators seeking clear rules for banks offering cryptocurrency services, to enable banks and crypto companies to work together.
Coinbase’s Letter to Regulators
On February 4, 2025, Coinbase sent a letter to the Office of the Comptroller of the Currency, the Federal Reserve, and the Federal Deposit Insurance Corporation. The company asks for confirmation that banks can offer crypto custody and execution services either directly or through third-party providers. Officials state that Coinbase aims to remove barriers to banks partnering with crypto custody and execution providers.
The Legal Angle
A legal analysis by three top firms found that current crypto banking restrictions are illegal, based on misunderstood regulations rather than actual statutes. The firms argue that only clear rules can provide lasting legal clarity that withstands political shifts.
The Broader Industry Context
Coinbase’s request comes as the crypto industry seeks a clear regulatory framework to thrive. So far, US banks have been wary of partnering with digital asset companies due to regulatory uncertainty, often leaving crypto companies without banking services and hampering their growth.
The outcome of how Coinbase's appeal will be addressed remains to be seen, highlighting ongoing tensions between innovation in the financial markets and regulatory oversight as the crypto industry grows.
