Coinbase Calls for Clear Crypto Banking Regulations – BitRss

Coinbase has renewed its call for clear and consistent regulations governing cryptocurrency services in the banking sector. The company has urged federal banking regulators, including the Office of the Comptroller of the Currency (OCC), Federal Reserve, and Federal Deposit Insurance Corporation (FDIC), to update guidance that would allow banks to offer crypto custody and execution (C&E) services either directly or through third parties like Coinbase.

In a recent letter, Coinbase emphasized the need to remove regulatory roadblocks that hinder lawful crypto actors from collaborating with banks. The letter, supported by legal analysis from three law firms, argues that current federal banking rules restricting access to crypto services were improperly adopted.

The Need for Regulatory Clarity

The cryptocurrency industry has seen significant growth over the past decade, yet banking regulations have not kept pace. Banks have consistently sought clear rules for partnering with crypto providers, a stance that Coinbase has long supported. The company advocates for transparency and a proper democratic process to ensure a safer system for all stakeholders.

Coinbase’s letter criticizes the current approach of issuing opaque and inconsistent guidance, which leaves crypto C&E service providers and banks in regulatory uncertainty. The company argues for a durable framework established through a notice and comment period, ensuring uniform application across the industry regardless of political changes.

Legal Foundation for Reform

According to a legal analysis shared with Coinbase, the current limitations on crypto-related banking services are deemed unlawful, stemming from improper regulatory interpretations. The analysis suggests that properly established rules, rather than mere guidance, provide the legal certainty needed for a stable and innovative financial system.

Coinbase’s proposal calls for the OCC, Federal Reserve, and FDIC to confirm that banks can offer crypto C&E services directly or through third parties and to remove unlawful impediments for C&E service providers partnering with banks.

As the new administration shapes its approach to digital asset regulation, Coinbase remains committed to engaging with regulators, banking partners, and other stakeholders. The company believes that clear, durable rules will benefit all parties involved, including traditional banks, crypto companies, and consumers.

For more details, read the full text of Coinbase’s letter here.

Why This Matters: Impact, Industry Trends & Expert Insights

Coinbase is advocating for regulatory clarity in the crypto banking sector, urging federal regulators to update guidance that would enable banks to offer cryptocurrency custody and execution services. The company highlights the need for a stable regulatory framework to facilitate lawful collaboration between banks and crypto service providers.

A recent trend in U.S. crypto banking regulations points to significant shifts, including a new executive order promoting digital financial technology and regulatory clarity. This aligns with Coinbase’s call for clear guidelines to enhance collaboration between banks and crypto companies.

Insights from Elliptic suggest that the incoming administration’s pro-crypto stance could lead to the repeal of restrictive policies, facilitating more robust engagement between banks and the crypto industry. This supports Coinbase’s efforts to establish a more favorable environment for crypto banking services.

Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.

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