Addressing regulatory bodies in the United States about the seemingly vague standing of crypto-related services in the country, American crypto exchange Coinbase urged the body to clarify whether banks should collaborate with crypto firms to provide crypto trading services.
Before now, U.S. banks could only hold crypto and treat it as liabilities because former President Joe Biden claimed that no appropriate guardrails were yet in place for cryptocurrencies.
However, following President Trump’s executive order to establish a strategic Bitcoin reserve for the United States and his suggestion to provide a regulatory framework that would govern cryptocurrencies and digital currencies, key players in the industry have seen renewed hope. Last month, the U.S. Securities and Exchange Commission (SEC) opened the doors for Wall Street banks to embrace crypto.
The Quest For Regulatory Clarity
Writing to the Office of Comptroller of the Currency (OCC), Coinbase urged regulatory bodies to reconsider the congressional disapproval of SEC accounting bulletins on crypto assets. According to the exchange, this prevents banks from entering the digital market and “imposes a de facto application process for processing novel banking activities.”
Meanwhile, referring to another written document from some law firms, Coinbase holds that there exist federal laws and regulations authorizing banks to carry on crypto services and engage with third-party providers like Coinbase.
Regulators Remain Silent
However, officials at U.S. regulatory bodies have refused to confirm or deny the matter, leaving Coinbase and industry players at a crossroads.
Emphasizing the importance of regulatory clarity, Chief Policy Officer at Coinbase, Faryar Shirzad, commented:
“It is important for regulators to make clear that banks can work with third-party providers in providing trading and exchange services to their customers.”
Coinbase recently received a regulatory license from the U.K. Financial Conduct Authorities (FCA) to offer financial services in the region, marking the exchange’s significant expansion into the crypto industry.
