Banks scared of Coinbase and cryptocurrencies

Coinbase says that banks have been advised by FDIC to not provide services to cryptocurrency users. Clearly, the banks are scared of Coinbase, most specifically anyone who provides fiat to cryptocurrency gateways and vice-versa. 

Interestingly, people are free to gamble their money in slot machines all over the world but cannot invest in cryptocurrencies because it is too dangerous. We think this is market manipulation because JP Morgan, BlackRock are accumulating loads of it while keeping normies on the sidelines. 

Why is the FDIC giving banks advice? That is not their job. That’s the OCC’s job to tell banks what they can and cant do. In 2020 the OCC upgraded bank charters to allow them to be stable coin custodians. The FDIC operators need to be fired. 

Also, SAB 121 is a clear case of bureaucratic overreach, uniquely forcing FDIC banks to report customer Bitcoin holdings on their balance sheets—an unprecedented requirement not applied to any other asset, effectively barring banks from Bitcoin custody. 

On the flip side, how many times must the FDIC say “no” for you to understand they don’t want you to prosper? It’s fascinating to see how often the traditional financial sector advises caution around crypto. Do you think this will impact mainstream adoption, or is it a temporary hurdle?