Coinbase Urges U.S. Regulators to Clarify Rules for Crypto Banking Services: Bloomberg

In a latest development, Coinbase is reportedly lobbying U.S. banking regulators for more explicit guidelines that would permit banks to provide cryptocurrency custody and trading services. The exchange hopes to drive policy changes that would reduce current restrictions, allowing banks to engage more easily with the crypto sector.

Coinbase Seeks Regulatory Clarity

Notably, this move is aimed at making it easier for banks to partner with companies like Coinbase. As per a latest report from Bloomberg, Coinbase has sent a letter to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors, and the Federal Deposit Insurance Corp. (FDIC).

The letter, reviewed by Bloomberg, requests the OCC to revoke an interpretive letter. Coinbase argues that it effectively establishes a de facto application process for new bank activities, preventing banks from joining the digital asset market.

Besides, Coinbase has also asked the Federal Reserve and FDIC to confirm that state-chartered banks can provide and outsource custody and execution services for cryptocurrencies, according to the report.

Coinbase also retained three law firms that submitted a separate letter, which argues that current federal laws and regulations already allow banks to offer cryptocurrency services and collaborate with third-party providers like Coinbase. Coinbase is urging banking regulators to confirm this.

Coinbase CLO To Testify Against Crypto Crackdown

Recently, the Coinbase CLO, Paul Grewal revealed that he is one of the testifiers at the upcoming Operation Chokepoint 2.0 hearing with the Senate Banking Committee. Grewal will join other experts, including MARA Holdings CEO Fred Thiel, to testify against the crackdown on the crypto industry. He noted that the lawmakers’ hearing will conduct an “oversight hearing looking into the past clandestine and undemocratic campaign to cut off crypto from banking.”

Notably, Coinbase has also been affected by Operation Chokepoint 2.0. Recently, the exchange discovered letters from the US FDIC revealing the agency’s involvement in the chokepoint agenda.