Crypto exchange Coinbase is calling upon federal regulators to clarify rules allowing banks to offer digital asset services, challenging what it describes as unnecessary barriers in the crypto banking sector.
In letters seen by Bloomberg, Coinbase addresses three major banking regulators — the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors, and the Federal Deposit Insurance Corporation (FDIC).
In the letters, — Coinbase requests explicit confirmation that banks can provide crypto custody and trading services, either directly or through third-party providers.
The largest US-based crypto exchange by trading volume also asserts that while federal laws already permit banks to engage in crypto activities, regulatory uncertainty has prevented many institutions from entering the market.
Says Faryar Shirzad, Coinbase’s chief policy officer, on the issue:
“We need clarity that banks can work with qualified third-party providers to serve their customers’ crypto needs.”
Yesterday, Coinbase continued to make good on its commitment to work with regulators by receiving approval from the UK Financial Conduct Authority (FCA) to become the United Kingdom’s biggest Virtual Asset Service Provider (VASP).
“This VASP registration makes Coinbase the largest registered digital assets player in the UK. The UK Government and the FCA are developing welcome regulation for the crypto sector, hopefully joining the growing trend of countries embracing economic freedom and free markets.
Governments around the world are waking up to the fact that crypto fuels economic prosperity. We believe that crypto is the most important technology that can generate growth in the world, and the UK is poised to benefit from this.”
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