Emre Yumlu 
Coinbase calls for permission for state banks to offer crypto custody and trading services cryptocurrency exchange. Coinbase is calling on US regulators to confirm that banks are free to provide services to crypto businesses.
On February 4, according to Bloomberg, Coinbase sent a letter to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), requesting clarity on the status of banking services for crypto. In the letter, Coinbase urged the OCC to withdraw an interpretive letter that “imposes a de facto application process for novel banking activities,” which it claims prevents banks from entering the crypto asset market.
Additionally, Coinbase is requesting confirmation from the Federal Reserve and the FDIC that state-chartered banks are authorized to provide and outsource crypto custody and execution services.
Coinbase Requests OCC to Remove Barriers for Crypto Market Access
Coinbase has asked the Office of the Comptroller of the Currency (OCC) to withdraw its interpretive letter that imposes a de facto application process for innovative banking activities, which Coinbase argues prevents banks from entering the crypto asset market. The exchange has also sought the intervention of the Federal Reserve and the FDIC to confirm that state-chartered banks have the authority to offer crypto custody and trading services.
According to Bloomberg, three law firms representing Coinbase have pointed out that current federal laws already allow banks to provide crypto services and collaborate with third-party service providers like Coinbase. Coinbase is now waiting for banking regulators to confirm this stance. The law firms involved include Arnold & Porter Kaye Scholer, Cleary Gottlieb Steen & Hamilton, and Wilmer Cutler Pickering Hale & Dorr.
Faryar Shirzad, Coinbase’s Chief Policy Officer, emphasized, “It is crucial for regulators to clarify that banks can work with third-party providers in offering trading and exchange services.”
Legal Struggles with FDIC: Digital Asset Firms Face Challenges
The role of US banks in serving the crypto industry has been a contentious issue. Some reports have suggested that the FDIC has instructed several US banks to halt their crypto-related activities. In June 2024, Coinbase filed lawsuits against the SEC and the FDIC, accusing them of orchestrating efforts to deprive digital asset firms of essential banking services.
In an ongoing legal battle, Coinbase’s Chief Legal Officer, Paul Grewal, stated in January 2025 that the FDIC deliberately omitted certain “pause letters” related to crypto in a Freedom of Information Act case. As President Donald Trump took office in January 2025, the community is now waiting for positive changes within the US crypto ecosystem. Coinbase, strengthening its ties with the Trump administration, hopes to foster new opportunities for crypto and economic freedom.
Coinbase’s Crypto Custody and Trading Support Marks Key Development
Coinbase’s move to reinforce its crypto custody and trading support is significant, especially as the platform provides custody services for Bitcoin exchange-traded funds (ETFs) that started trading in 2024. This step highlights Coinbase’s growing influence in supporting the broader crypto market in the US.
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