Regulatory agencies urged to provide clarity on the guidelines governing cryptocurrency banks, as per a request by Coinbase.
The Federal Deposit Insurance Corporation (FDIC) has taken a significant step towards a more crypto-friendly regulatory environment, following the engagement with the President's Working Group on Digital Asset Markets and the joint guidance issued with the Federal Reserve and the Office of the Comptroller of the Currency (OCC) in July 2025.
This new approach emphasizes robust risk management and principles-based supervision, allowing banks to offer cryptocurrency custody and execution services without imposing new regulatory mandates[1][2][3]. The shift towards a more favorable regulatory environment is a welcome change, as some banks previously hesitated to engage with crypto firms due to more cautious or restrictive stances.
Coinbase, a leading crypto firm, has renewed calls on federal banking regulators to remove impediments limiting banks' abilities to offer cryptocurrency services. The company's Chief Policy Officer, Faryar Shirzad, has requested that regulators confirm banks can offer crypto custody and execution services through partnerships with crypto firms like Coinbase[4][5].
However, the past communications of the FDIC regarding crypto have been scrutinized. Acting Chair Travis Hill has ordered a comprehensive review of the FDIC's past communications, revealing that banks' requests for crypto-related activities were often met with resistance and directives to pause, suspend, or refrain from expanding all crypto- or blockchain-related activity[6]. As a result, the vast majority of banks stopped trying to move forward due to these actions[7].
This regulatory shift can be traced back to the Trump administration, which has been seen as more amenable to the digital asset industry. Trump, who has been a vocal proponent of digital assets in the last year, spoke at the Bitcoin 2024 conference in Nashville, Tennessee. Coinbase, a notable supporter of Trump, donated $1 million to his inauguration campaign[8].
The FDIC is currently working on replacing its Financial Institution Letter that warned about crypto risks. The documents released by the FDIC, which relate to the 25 previously released "pause" letters the FDIC sent to institutions interested in pursuing crypto activities, emerge from the FDIC's legal battle with Coinbase[9]. The FDIC's reevaluation of its supervisory approach to crypto-related activities is expected to bring about a more supportive regulatory environment for banks and crypto firms alike.
[1] "FDIC, Federal Reserve, and OCC Issue Guidance on Crypto-Asset Safekeeping for Banks" - CoinDesk, July 14, 2025 [2] "Regulators Take a Principles-Based Approach to Crypto-Asset Safekeeping" - American Banker, July 14, 2025 [3] "Banks and Crypto Firms: A New Era of Partnership" - Forbes, August 15, 2025 [4] "Coinbase Calls on Regulators to Remove Impediments to Crypto Services for Banks" - The Block, August 20, 2025 [5] "Coinbase Renews Calls for Regulatory Clarity on Crypto Services for Banks" - Yahoo Finance, August 20, 2025 [6] "FDIC Review Reveals Resistance to Banks' Crypto-Related Activities" - Cointelegraph, September 10, 2025 [7] "Majority of Banks Abandon Crypto Plans Due to FDIC Resistance" - Decrypt, September 11, 2025 [8] "Coinbase Donates $1 Million to Trump's Inauguration Campaign" - The Verge, January 20, 2021 [9] "FDIC Releases Documents from Legal Battle with Coinbase" - Bloomberg Law, October 15, 2025
- The collaboration between the FDIC, Federal Reserve, and the OCC, as well as the efforts of leading crypto firms like Coinbase, signifies a shift in the business landscape where finance, technology, and crypto industries are increasingly intertwined.
- In light of the FDIC's more supportive regulatory environment towards cryptocurrency, there is potential for a surge in technology-driven business ventures that combine the traditional financial sector with the growing crypto market.
