Coinbase is pushing U.S. banking regulators to ease restrictions and let banks offer crypto 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), pushing for clear rules so that banks can legally provide crypto custody, trading, and partnerships with digital asset companies.
According to a Bloomberg report, Coinbase wants the OCC to withdraw an interpretive letter that it says acts as an unofficial approval process for banks interested in crypto. It also wants the Fed and FDIC to confirm that state-chartered banks can hold and trade crypto for customers.
“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,” said Faryar Shirzad, Coinbase’s chief policy officer.
The exchange is currently backed by three top law firms—Arnold & Porter Kaye Scholer, Cleary Gottlieb Steen & Hamilton, and Wilmer Cutler Pickering Hale & Dorr. The legal teams argue that banks already have the legal right to offer crypto services, but regulators have not been clear about it.
This push comes as Congress investigates “Operation Choke Point 2.0,” an alleged effort by regulators to pressure banks into cutting off crypto firms. Coinbase claims it found internal FDIC documents where the agency told banks to “pause” crypto-related activities. The company says this is unfair and prevents banks from fully embracing digital assets.
Coinbase has been fighting regulators for a while. Last year, it sued both the FDIC and the U.S. Securities and Exchange Commission (SEC) and accused them of working together to block crypto firms from basic banking services.Â
Paul Grewal, Coinbase’s chief legal officer, has doubled down on these claims, saying the FDIC even held back important documents in a Freedom of Information Act lawsuit.
With Donald Trump back in office, crypto firms are hoping for big changes. Coinbase has been working closely with Trump’s team, believing his administration could be friendlier to the industry.
Coinbase executives, including Grewal, will testify before Congress on Thursday. Lawmakers will discuss whether banks are being unfairly discouraged from working with crypto firms. The hearing could be a major moment for the future of crypto banking in the U.S.
Also Read: White House AI Crypto Czar To Probe Operation Choke Point 2.0
