On February 4, 2025, Coinbase, a leading cryptocurrency exchange, sent letters to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors, and the Federal Deposit Insurance Corporation (FDIC) requesting clarity on the provision of banking services to crypto businesses.
Coinbase specifically asked the OCC to withdraw an interpretive letter that it believes hinders banks from entering the crypto market. The exchange also requested confirmation from the Fed and FDIC that state-chartered banks are permitted to offer and outsource crypto custody and execution services.
Coinbase argues that existing federal laws already authorize banks to provide crypto services and collaborate with third-party providers like Coinbase. However, the company believes that regulatory confirmation is crucial for banks to feel confident in offering these services.
The role of US banks in the crypto industry has been a subject of debate. While some banks, such as BNY Mellon, have announced plans to provide crypto custody services, reports have suggested that the FDIC has contacted several US banks, urging them to pause their crypto activities.
In June 2024, Coinbase filed lawsuits against the US Securities and Exchange Commission and the FDIC, alleging that the agencies were attempting to restrict digital-asset firms from accessing essential banking services. Coinbase's chief legal officer, Paul Grewal, reiterated these allegations in January 2025, claiming that the FDIC intentionally omitted certain "pause letters" related to crypto in a Freedom of Information Act lawsuit.
With the inauguration of US President Donald Trump on January 20, 2025, the crypto community is hopeful for positive developments in the US crypto ecosystem. Coinbase, which has been strengthening its ties with the Trump administration, views the president's victory as a positive step for crypto and economic freedom.
Coinbase's efforts to secure banking support for crypto custody and execution are significant, as the platform provides custody services for numerous US Bitcoin exchange-traded funds (ETFs), which began trading in 2024.