Congress Considers Proposal Allowing Banks to Hold Cryptocurrencies

Congress is considering a legislative proposal that would allow banks and credit unions to hold cryptocurrencies and issue stablecoins, according to a report.

This development comes amid ongoing efforts to integrate digital assets into the financial sector through the GENIUS Act, which established a framework for payment stablecoins in the U.S.

The proposal would mark a shift from the current guidance-based approach to statutory permission, potentially broadening institutional participation in the crypto market.

This decision could have significant implications for the financial sector, as it would enable federally insured institutions to engage more directly with digital currencies.