Coinbase Urges Federal Agencies to End ‘Debanking’ of Crypto Firms
Coinbase has sent a letter to the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), calling for regulatory clarity on crypto banking.Key Requests from Coinbase
The exchange is asking regulators to:Key Highlights:
- Confirm that banks can offer crypto custody and execution services.
- Remove regulatory obstacles preventing crypto firms from partnering with banks.
- Rescind an OCC interpretive letter that imposes an “unlawful” application process on banks engaging in crypto activities.
Congressional Hearings and Legal Pushback
The issue of crypto “debanking” has gained traction in Washington, with Congressional hearings scheduled this week. Coinbase’s Chief Legal Officer, Paul Grewal, is set to testify before the House Financial Services Committee.Uncertainty Under the Trump Administration
While President Donald Trump’s administration has been more crypto-friendly, it remains unclear how his appointed regulators will handle the issue. Acting FDIC Chair Travis Hill has acknowledged the need for clearer guidance on banks working with crypto firms.
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