Coinbase Calls for Clear Guidelines for Crypto Services by US banks

Coinbase, one of the world’s leading cryptocurrency exchanges, has appealed to US regulators to pave the way for banks seeking to offer crypto services.

Coinbase request is directed at key players such as the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). At the heart of the request is a desire for clear guidelines to ease the transition of traditional financial institutions into the world of cryptocurrencies.

Background to Coinbase’s initiative

The decentralized nature of cryptocurrencies often conflicts with the centralized structures of traditional banking. However, in recent years, a need has emerged to bring these two worlds closer together.

Brian Armstrong, the CEO of Coinbase, has repeatedly stressed that cryptocurrencies represent a secure and innovative form of finance that can improve access to financial services. However, without clear regulatory guardrails, banks and financial institutions risk taking legal risks, which inhibits their willingness to implement crypto services.

The current development

On February 4th, 2025, Coinbase officially expressed its desire for the US authorities to create a clear regulatory framework that would allow banks to safely and efficiently integrate cryptocurrencies into their service offerings.

This request comes at a time when cryptocurrencies are increasingly being viewed as a legitimate asset class and are attracting interest from large investors. Crypto enthusiasts and traditional banks are eagerly awaiting clear signals from regulators promising greater security in dealing with digital assets.

Possible impact on the crypto market

If the requested policies are introduced, it could have a significant impact on the entire crypto market. First of all, it would mean that larger amounts of capital from institutional and retail investors could flow into the crypto market more easily.

Banks could offer crypto custody and trading services, which could encourage more people to invest in digital currencies. This could potentially stabilize the volatility of the markets and pave the way for wider adoption of cryptocurrencies.

Impact on banks and traditional financial service providers

For banks, a clear regulatory landscape could mean they can tap into new revenue streams by offering crypto services.

This could even inspire new business models within traditional banking. In addition, it could create new opportunities for collaboration between crypto platforms and traditional financial institutions to develop innovative financial products for customers.

Conclusion: A step towards integration

Coinbase’s appeal to US regulators highlights the urgent need for clear legal guidelines that facilitate the integration of cryptocurrencies into the existing financial system. If this wish is granted, both the crypto market and the traditional banking system could benefit.

Institutional investors and individuals could benefit from a more stable and regulated environment that allows them to safely use and invest in crypto services. The coming months will be crucial to see whether regulators respond to the industry’s pleas and pave the way for a harmonized coexistence of both financial worlds.

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(Featured image by Coinstash Australia via Unsplash)

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