AsianFin -- Coinbase has called on U.S. regulators to clarify rules enabling banks to offer cryptocurrency services. The cryptocurrency exchange has sent letters to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), urging them to confirm that banks are legally allowed to provide crypto custody and execution services. Coinbase argues that while current laws may allow these services, regulatory uncertainty has hindered banks from offering them.
Between March 2022 and May 2023, the FDIC reportedly sent letters to banks advising them to scale back or cease crypto services altogether. Some lawmakers contend that banks faced pressure to sever ties with crypto companies. House Oversight Committee Chairman James Comer has claimed that the Biden administration pressured banks in a manner similar to its alleged influence over social media platforms to censor content. Comer has called for an investigation to determine if financial regulators were involved in a coordinated effort to "debank" crypto firms.
In June 2024, Coinbase filed lawsuits against the SEC and FDIC, accusing the agencies of conspiring to exclude crypto companies from banking services. In January 2025, Coinbase’s Chief Legal Officer Paul Grewal reiterated these claims, alleging that the FDIC withheld crucial documents regarding its communication with banks about crypto-related restrictions. Coinbase is set to testify before the Senate Banking Committee about "debanking," where lawmakers will question financial institutions regarding their policies toward digital asset companies.
Explore more exclusive insights at nextfin.ai.