Jito Labs Executive: Banks and Other Financial Institutions Can Operate Compliantly on Permissionless Blockchains

PANews reported on September 19 that Rebecca Rettig, Chief Operating Officer and Chief Legal Officer of Jito Labs, wrote in an article published by a16z crypto that some banks mistakenly believe they must use permissioned networks to comply with the Bank Secrecy Act and sanctions laws, but in fact financial institutions can operate compliantly on permissionless blockchains. The article states that the relevant laws require reasonable controls commensurate with risk, rather than zero risk or control over the underlying infrastructure. In November 2025, the U.S. Office of the Comptroller of the Currency confirmed that banks can pay network fees on blockchains and hold related crypto assets. The article also notes that technologies such as zero-knowledge proofs and confidential transfers can allow institutions to prove compliance to regulators without disclosing customer positions. The article argues that this is consistent with the recently passed GENIUS Act in the U.S., which places anti-money laundering and sanctions controls at the application layer.