U.S. Banks Step Cautiously into Crypto Amid Regulatory Shifts
Major U.S. banks are beginning to explore opportunities in the cryptocurrency space, but are doing so cautiously due to lingering regulatory uncertainties. While recent signals from Washington—such as eased restrictions and more supportive stances from regulators—have made crypto more appealing, large lenders are focusing on small pilot projects, forming partnerships, or limiting trading activities to test the waters. The cautious approach is rooted in fears of violating still-evolving laws and the risks associated with crypto volatility and compliance requirements.
Despite growing institutional interest, no major bank wants to be the first to make a bold move into the crypto industry. Executives from several leading firms said they would prefer to follow peers who have successfully launched crypto services without regulatory backlash. JPMorgan CEO Jamie Dimon remains a skeptic, saying the bank will not offer custody services for crypto assets due to concerns about systemic abuse and money laundering. However, he acknowledges customers’ right to invest in bitcoin, comparing it to the freedom to smoke despite health risks.
The political landscape is also shifting, with former President Donald Trump pledging to be the “crypto president” and advocating for digital assets at the federal level. This has encouraged banks but hasn’t eliminated their demand for clear, unified guidelines from all relevant regulators. Many see crypto custody services as an entry point, but thin margins and high risks mean most banks are looking to partner with experienced crypto firms instead of building infrastructure from scratch.
Some banks, like Charles Schwab and Bank of America, have hinted at plans for expanding crypto offerings, including stablecoins and spot trading, pending regulatory approval. Morgan Stanley is also exploring ways to integrate crypto into its platforms and serve as a transaction intermediary. While the Office of the Comptroller of the Currency and the SEC have relaxed certain policies, banks are still pushing for comprehensive and consistent rules across agencies.
Ultimately, while the regulatory environment for crypto is improving, most big banks remain in a watch-and-wait mode. They are calling for clearer anti-money laundering guidelines and consistent oversight before launching full-scale crypto ventures. Legal experts and financial executives alike agree that more defined frameworks are necessary for digital assets to become a mainstream part of traditional banking.
Source: Reuters