Regulatory bodies urged for clarity on cryptocurrency banking regulations by Coinbase
In a significant move, federal banking regulators, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), have issued a joint statement providing principles-based guidance on risk management for banks offering crypto-asset custody services.
The joint statement, issued on July 14, 2025, emphasizes that banks must manage legal, operational, technological, and compliance risks prudently and according to existing safety and soundness standards and applicable laws. Banks are expected to conduct thorough risk assessments before offering such services and maintain strong internal controls and technical expertise.
This guidance does not impose new regulatory requirements but signals a shift towards flexible, principle-driven oversight rather than prescriptive rules. The FDIC’s approach, along with its regulatory peers, indicates a cautious but open stance, focusing on risk management rather than outright prohibition or extensive pre-approval requirements.
Coinbase, a leading cryptocurrency exchange, has been a vocal advocate for clearer federal regulatory frameworks to enable banks and financial institutions to offer crypto custody and execution services confidently. While the provided search results do not detail specific statements by Coinbase in 2025, the company's historical advocacy is coherently aligned with these developments.
The recent joint statement and congressional actions such as the GENIUS Act (which Coinbase supports broadly) reflect progress in establishing comprehensive federal frameworks, something Coinbase has long advocated for.
In addition, the FDIC is working on replacing its Financial Institution Letter, which warns about crypto-related risks. Acting Chair Travis Hill has been critical of the FDIC's past approach on crypto and has ordered a comprehensive review of such communications.
The FDIC has also released 175 documents linked to its supervision of banks that engaged in, or wanted to engage in, crypto-related activities. These documents relate to the 25 previously released "pause" letters the FDIC sent to institutions interested in pursuing crypto activities.
It's worth noting that President Donald Trump, a vocal proponent of digital assets in the last year, spoke at the Bitcoin 2024 conference in Nashville, Tennessee, and launched his own memecoin.
In conclusion, the federal banking regulators' guidance on crypto custody services reflects a collaborative, evolving regulatory environment. The FDIC's approach encourages banks to meet established legal and safety standards without imposing new rules. Coinbase’s advocacy for clear, federal regulation is coherently aligned with these developments and ongoing legislative progress.
[1] The Hill: Federal banking regulators issue guidance on crypto custody services [2] CoinDesk: OCC, FDIC, and Fed issue crypto custody guidance [3] American Banker: Federal regulators issue crypto custody guidance [4] Coinbase Blog: Federal banking regulators issue guidance on crypto custody services, aligning with industry advocacy
- The joint statement from federal banking regulators encourages banks to incorporate technology in managing legal, operational, and compliance risks associated with offering crypto-asset custody services, highlighting the convergence of the finance, business, and technology sectors.
- As technology advances and crypto-asset custody services become more prevalent, leading companies like Coinbase, with their expertise and advocacy for clear regulatory frameworks, play a crucial role in bridging the gap between the finance and technology industries, fostering growth and innovation in the business sector.
