Cryptocurrency exchange Coinbase is advocating for US regulators to clarify that banks can offer services to cryptocurrency businesses. In a letter to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors, and the Federal Deposit Insurance Corporation (FDIC), Coinbase requested the withdrawal of an interpretive letter that creates barriers for banks wishing to enter the crypto market. Additionally, Coinbase seeks confirmation that state-chartered banks can provide crypto custody and execution services. Legal support from prominent law firms suggests that current federal laws permit such services, but clarity from regulators is still necessary. Coinbase’s chief policy officer emphasized the importance of allowing banks to collaborate with third-party providers for trading and exchange services. The landscape for banks serving the crypto industry has been contentious, with some banks hesitating to engage in crypto activities amid regulatory scrutiny. Coinbase's ongoing legal battles may impact potential changes in the crypto ecosystem under future regulatory frameworks.

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