Bitcoin Banking Access Hinges on Regulatory Whiplash

US bank regulators have been changing their crypto stances with every new president since 2017, creating uncertainty for Bitcoin holders. The current optimistic regulatory environment may be short-lived as it relies on agency actions that can easily be reversed by future administrations.

In July 2020, the OCC informed national banks they could hold crypto for customers during President Trump's first term. However, the Biden administration took a different approach in November 2021, mandating that banks obtain supervisor approval before engaging in any crypto activities. The SEC's 2022 accounting guidance also made custody more expensive by requiring firms to list customers' crypto as a liability.

When Trump returned to office, the trend shifted again. In January 2025, the SEC eliminated its accounting guidance; in March 2025, the OCC lifted the sign-off requirement, and the FDIC and the Fed retracted their warnings that spring.

A law provides greater stability for Bitcoin than regulatory guidelines because Congress must act twice to repeal it, while a regulator can revoke a rule on its own. The GENIUS Act, enacted in July 2025, established stablecoin regulations as law, but the broader CLARITY Act stalled in the Senate in September.