TL;DR
- Coinbase asks U.S. regulators to remove barriers that limit banks from offering crypto services, such as custody and trade execution.
- It requests the withdrawal of an OCC letter that hinders banks from entering the digital asset market and seeks confirmation of the legality of partnerships with third parties.
- Regulatory changes under the new administration favor crypto adoption, including the repeal of the restrictive SEC’s SAB 121.
Coinbase has requested that U.S. regulators remove restrictions preventing banks from offering services related to cryptocurrencies.
The company argues that current rules limit the participation of financial institutions in the sector and hinder the integration of services such as custody and trade execution. To support its position, it sent a letter to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), urging regulatory clarifications that would allow banks to collaborate with specialized third parties.
Coinbase Requests Explicit Confirmations
One of the main points of the request is the elimination of an interpretive letter from the OCC that, according to Coinbase, imposes unnecessary obstacles for banks interested in exploring the digital asset market. It also asked the Federal Reserve and the FDIC to confirm that state-chartered banks can offer custody services and operate with external providers without additional restrictions.
The legal support for the petition comes from three law firms that argue current legislation already allows banks to offer crypto services and partner with companies in the sector. However, Coinbase believes it is necessary for regulators to confirm this explicitly to clear doubts and encourage greater banking participation in the crypto market.
A Shift Under the Trump Era
The regulatory framework in the United States has begun to shift under the new presidential administration. In recent months, rules that hindered the adoption of cryptocurrencies in the banking sector have been repealed. One of the most relevant changes was the elimination of SAB 121, a guideline from the Securities and Exchange Commission (SEC) that required banks to record custodied assets as liabilities on their balance sheets, discouraging them from offering these services.
Coinbase has stated that facilitating bank participation in the sector benefits the entire industry. The company has worked on various initiatives to improve the relationship between traditional financial institutions and the crypto ecosystem, including its involvement in legislative discussions. Its request to regulators is part of this strategy and comes shortly before a Senate hearing on the challenges crypto companies face in accessing banking services
