Crypto exchange Coinbase is urging federal regulators to provide clear guidelines for banks to offer digital asset services, challenging what it perceives as unnecessary obstacles in the crypto banking industry.

In letters obtained 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 these letters, Coinbase requests explicit confirmation that banks can offer crypto custody and trading services, either directly or through third-party providers.

The largest cryptocurrency exchange in the United States, based on trading volume, also argues that although federal laws already allow banks to engage in crypto activities, regulatory uncertainty has deterred many institutions from entering the market.

Faryar Shirzad, Coinbase’s chief policy officer, states the following on the matter:

“We need clarity that banks can work with qualified third-party providers to meet their customers’ crypto needs.”

Yesterday, Coinbase continued its commitment to collaborate with regulators by obtaining approval from the UK Financial Conduct Authority (FCA) to become the United Kingdom’s leading Virtual Asset Service Provider (VASP).

“This VASP registration positions Coinbase as the largest registered digital assets player in the UK. The UK Government and the FCA are developing favorable regulations for the crypto industry, potentially joining the increasing number of countries embracing economic freedom and free markets.

Governments worldwide are realizing that crypto drives economic prosperity. We believe that crypto is the most significant technology capable of fostering global growth, and the UK is well-positioned to benefit from this.”

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