Banks Prepare to Lend Against Bitcoin Without Congressional Approval
Michael Saylor, Chairman of MicroStrategy, believes that banks will start lending against Bitcoin without needing new legislation from Congress. He points out that Deutsche Bank is already waiting for approval to offer such loans.
Saylor notes that the CLARITY Act has stalled in Congress, but he expects the SEC and CFTC to advance crypto rules under existing law. This would allow banks to expand Bitcoin custody and loans against it, which doesn't depend on new Congressional action.
The Office of the Comptroller of the Currency (OCC) has issued a series of interpretive letters confirming that national banks may custody crypto assets and execute trades at customer direction. Several large U.S. banks have launched programs accepting Bitcoin as loan collateral, and New York's adoption of updated Uniform Commercial Code rules in June gave lenders a clearer legal path to perfect a security interest in digital-asset collateral.
Deutsche Bank plans to launch regulated custody for Bitcoin, Ethereum, and select stablecoins by the end of 2026. However, its plan is awaiting approval from BaFin, Germany's financial regulator, under the European Union's Markets in Crypto-Assets regulation.