Congress Considers Expanding Crypto, Stablecoin Rules for Banks

Congress is reportedly considering expanding crypto rules to allow banks and credit unions to hold digital assets, issue stablecoins, and use blockchain. According to new information from the Congressional Research Service, Policymakers are currently debating whether activities involving cryptocurrencies and digital assets (crypto) should be considered bank-permissible activities.

According to the report, any new legislation would result in a more durable outcome, reducing the likelihood of frequent regulatory changes. Furthermore, Congress may consider whether a more permanent solution allowing or limiting crypto activities would be preferable. In recent years, the policy debate on permissible activities has focused on crypto. Bank lawmakers have consistently maintained that banks can conduct crypto-related activities only if they are legally permissible and conducted in a safe and sound manner. However, that has changed in recent years, with the arrival of the second Trump administration and the growing popularity of cryptocurrency.

As the crypto clarity continues to be debated in the U.S. Senate, the future of digital assets in traditional finance remains a hot topic. The SEC has already agreed to begin working on clearer crypto regulation and new rules for digital assets to be handled by banks. The GENIUS Act already made stablecoin issuance, custody, and related activities allowed for businesses owned by banks this past summer.

Whether any administration seeks to expand or constrain bank participation in crypto, the report suggests the regulatory baseline remains vulnerable to reversal unless Congress acts, and that a permissive stance would raise questions about capital, liquidity, anti-money-laundering compliance, and exposure to crypto-market volatility.