Coinbase urges US regulators to clear path for banks to offer crypto services

COINBASE Global on Tuesday (Feb 4) renewed its call for US banking regulators to clarify or revise their position on banks offering cryptocurrency services as well as potentially doing tie-ups with companies in the digital assets sector.

The crypto exchange’s move comes amid a broader industry push to lobby lawmakers for a regulatory framework to support the sector’s growth. Most traditional US banks have steered clear of digital asset firms, citing a lack of regulatory clarity.

“For the last several years, US bank regulators have unilaterally and undemocratically barred banks from offering crypto services,” Coinbase chief policy officer Faryar Shirzad said.

The industry had donated millions of US dollars to back Donald Trump’s return to the White House, as it sought making cryptocurrency regulation a top priority for the new administration after years of enforcement actions that companies have criticised as overreach.

Shirzad also sent a letter to top US 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 permit banks to offer services tied to the crypto sector.

The OCC declined to comment, and the Fed and FDIC did not immediately respond to Reuters’ requests for comments.

While crypto companies have alleged that US bank supervisors have made a concerted effort to choke them off the traditional financial system, regulators have denied the claim.

Last month, the US Securities and Exchange Commission’s new leadership created a task force to develop a regulatory framework for crypto assets.

Trump, who has promised to be a “crypto president”, has also named former PayPal executive David Sacks as his “White House AI & Crypto Czar”.

The administration is expected to reshape US policy on digital currency, but US bankers have so far remained cautious on cryptocurrencies. REUTERS