Coinbase Urges FDIC, OCC, and Fed To Clear Path for Bank-Crypto Partnerships

US regulators are being urged by Coinbase to establish precise rules governing banks’ ability to provide digital asset services. The exchange contends that financial institutions are unable to participate fully in the cryptocurrency sector due to needless regulatory obstacles.

Coinbase has contacted the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) in letters that Bloomberg was able to access. The exchange asks for verification that banks, either directly or through third-party partnerships, are permitted to offer crypto custody and trading services.

Despite existing federal laws allowing banks to engage in crypto-related activities, Coinbase claims that unclear regulations discourage many institutions from participating. The company’s chief policy officer, Faryar Shirzad, emphasized the need for regulatory guidance, stating: “We need clarity that banks can work with qualified third-party providers to serve their customers’ crypto needs.”

Coinbase Expands Presence in the UK

Beyond regulatory efforts in the US, Coinbase continues to strengthen its position globally. The exchange recently received approval from the UK Financial Conduct Authority (FCA) to become the largest Virtual Asset Service Provider (VASP) in the country.

A Coinbase spokesperson highlighted the significance of this approval, stating: “This VASP registration makes Coinbase the largest registered digital assets player in the UK. The UK Government and the FCA are developing welcome regulation for the crypto sector, hopefully joining the growing trend of countries embracing economic freedom and free markets.

Governments around the world are waking up to the fact that crypto fuels economic prosperity. We believe that crypto is the most important technology that can generate growth in the world, and the UK is poised to benefit from this.”

As governments refine their approach to digital assets, Coinbase remains vocal about the need for clear regulations, both in the US and globally.