Launchy Regulatory Roundup #61 - Coinbase Battles Banks Over Stablecoin Yield Ban

Is Custodia Ruling Just a Speed Bump for Crypto Banks?

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
November 09, 2025

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Welcome to our 61st edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

Headline: Coinbase Battles Banks Over Stablecoin Yield Ban 👀
Global Legal Roundup
Case Study: Is Custodia Ruling Just a Speed Bump for Crypto Banks? 🔎

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HEADLINE

Coinbase Battles Banks Over Stablecoin Yield Ban

IMG: The New York Times

State of play: Coinbase and major US banks are locked in a policy fight over how the Treasury should implement the GENIUS Act.

Coinbase urged regulators to allow non-issuers like exchanges to offer yield on stablecoins, arguing that Congress only intended the ban to apply to issuers.
The Bank Policy Institute and other banking groups are lobbying for a full prohibition, warning of potential $6.6T in deposit outflows from banks.
Coinbase countered that Treasury “has no authority to second-guess Congress,” framing the debate as one between innovation and regulatory overreach.

What’s Next: The GENIUS Act is set to take effect by late 2026 or early 2027.

Why it Matters: A full ban could cement bank dominance over dollar liquidity, while a narrower rule would open space for crypto platforms to compete in onchain finance.

Our Take: This is more than a compliance fight. It’s a power struggle over who controls the future of digital dollars, banks or builders.

GLOBAL LEGAL ROUNDUP

America:

🇺🇲 Fed Governor calls stablecoins 'a force to be reckoned with.
🇺🇲 Trump talks crypto, corruption and CZ in '60 Minutes' interview.
🇺🇲 SBF returns to court seeking new trial after FTX fraud conviction.
🇺🇲 CZ says he was surprised by pardon, denies ties to the Trump family.
🇺🇲 DeFi players launch alliance to champion Ethereum to policymakers.
🇺🇲 Samourai’s Keonne Rodriguez sentenced to a maximum 5-year term.
🇨🇦 Canada unveils upcoming stablecoin legislation in federal budget.

Europe:

🇬🇧 UK to unveil stablecoin regulation consultation on Nov. 10.
🇮🇹 Italian banks back digital euro but urge ECB to spread out costs.
🇮🇪 CB of Ireland fines Coinbase $25M for breaching AML obligation.
🇪🇺 EC eyes SEC-style single supervisor over crypto, stock exchanges.
🇫🇷 French MPs advance measure to tax crypto as ‘unproductive wealth.’

APAC:

🇯🇵 Japan's regulator backs joint stablecoin project by three major banks.
🇭🇰 Hong Kong to allow crypto exchanges to access global liquidity pools.

CASE STUDY

Is Custodia Ruling Just a Speed Bump for Crypto Banks?

State of play: TD Cowen’s Jaret Seiberg said the recent appeals court decision denying Custodia Bank access to a Federal Reserve master account is only a temporary setback for crypto institutions seeking entry into the US banking system.

The court reaffirmed that the Fed has discretion over granting master accounts, which give direct access to payment rails and the money supply.
Seiberg expects a forthcoming proposal for “skinny master accounts” that would allow limited Fed access while managing systemic risk.
He added that crypto firms like Coinbase, Ripple, and Circle could still secure national trust bank charters under a supportive Comptroller.

Our Take: The ruling slows progress but doesn’t shut the door. “Skinny accounts” could still give crypto banks a way into the Fed system.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

Nina Suthers’s read onMarketing a Token Launch.
J Hackworth’s read on The Quiet Maturation of Crypto x AI.
Marisa Coppel’s read on Phantom’s comment on GENIUS implementation.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.