One of the UK's most influential finance lobby groups, UK Finance, sent Coinbase a letter last week notifying the company that its membership was being ended, according to people familiar with the move. After reviewing its membership framework, the board decided that crypto exchanges do not meet its criteria. One person said Coinbase can appeal. Neither Coinbase nor UK Finance offered any comment through their spokespeople.
UK Finance's documents describe it as a trade association for the wider financial industry, with 300 members that span large banks at home and abroad, along with market infrastructure and payments companies.
Digital asset companies have become a bigger force in policy debates globally, often taking positions that differ from those of traditional lenders. Coinbase and its Chief Executive Officer Brian Armstrong have been among the most outspoken champions of crypto in conversations with lawmakers and policymakers around the world.
In the US, the sector's influence has been especially visible as crypto firms and their backers spend heavily on campaigns and lobbying to push for clearer, more favorable rules. According to campaign finance disclosures, the industry-aligned super PAC Fairshake had in excess of $112 million as of July 31, and observers expect part of that money to be spent before November's US midterm elections.
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Banks and crypto firms have recently clashed over whether customers ought to be permitted to earn rewards on stablecoins, which are designed to keep a steady value, typically pegged to the dollar. Banking groups argued that offering rewards could pull deposits from lenders. That dispute was one of the sticking points that ultimately derailed the Clarity Act's passage last week, landmark US legislation aimed at governing the sector.
Crypto firms argue that some British banks' limits are hindering customers from transferring funds to digital asset platforms and are blocking companies from opening bank accounts. In July, an all-party bloc of UK lawmakers opened an inquiry into those access issues.
Who gets a seat at tables like UK Finance influences how the rules take shape. If bank-crypto fights over things like stablecoin rewards and payments access drive the next wave of policymaking, that could affect how easily you move money into crypto, how banks compete for deposits, and which products actually hit the market. Representatives for Coinbase and UK Finance would not comment.
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