Congress Considers Expanding Crypto Rules for Banks and Credit Unions

US lawmakers are considering a proposal to expand the rules governing cryptocurrency and stablecoin activities for banks and credit unions. According to a report from the Congressional Research Service, policymakers are debating whether to allow banks to hold digital assets, issue stablecoins, and use blockchain technology.

The current debate centers around the question of whether activities involving cryptocurrencies and digital assets should be considered bank-permissible activities. 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.

The proposal aims to provide a more durable outcome, reducing the likelihood of frequent regulatory changes. Congress may consider whether a more permanent solution allowing or limiting crypto activities would be preferable.

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, which made stablecoin issuance, custody, and related activities allowed for businesses owned by banks, was passed this past summer.