Coinbase Urges US Regulators to Clear Path for Banks to Offer Crypto Services
On Tuesday, Coinbase Global renewed its call for U.S. banking regulators to clarify or revise their stance on banks providing cryptocurrency services and forming partnerships with digital asset companies. The move comes amid a broader push by the crypto industry to lobby lawmakers for a regulatory framework that could foster the sector’s growth. Most traditional U.S. banks have been hesitant to engage with digital asset firms, citing the lack of regulatory clarity.
Coinbase’s Chief Policy Officer, Faryar Shirzad, expressed frustration on social media, claiming that U.S. bank regulators have “unilaterally and undemocratically” prohibited banks from offering crypto services. This marks the latest in a series of efforts by the crypto industry to press for more favorable regulations.
The crypto sector has been actively working to influence political outcomes, having donated millions of dollars to support Donald Trump’s bid for the White House, hoping to prioritize cryptocurrency regulation under a potential new administration. Shirzad also reached out directly to top U.S. banking regulators, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), urging them to allow banks to engage with crypto businesses. However, the OCC declined to comment, and the Fed and FDIC did not immediately respond to inquiries.
The crypto industry has often accused U.S. regulators of deliberately hindering their access to the traditional financial system. While regulators have denied these accusations, the recent move by the U.S. Securities and Exchange Commission (SEC) to create a task force focused on developing a regulatory framework for crypto assets signals a potential shift in policy.
Former PayPal executive David Sacks has also been appointed as Trump’s “White House A.I. & Crypto Czar,” further suggesting that digital assets may receive more attention from the government if Trump is reelected. Despite these political shifts, U.S. banks have remained cautious about adopting cryptocurrencies in their services.