US Congress Considers Expanding Crypto Rules for Banks

Congress is considering expanding rules for banks and credit unions to allow them to hold digital assets, issue stablecoins, and use blockchain technology. According to a report from the Congressional Research Service, policymakers are debating whether activities involving cryptocurrencies should be considered bank-permissible.

The report notes that any new legislation would result in a more durable outcome, reducing the likelihood of frequent regulatory changes. This change would also allow banks to provide more services to their customers, potentially increasing adoption and usage of digital assets.

However, some experts have raised concerns about the potential risks associated with allowing banks to engage in crypto-related activities. These include issues related to capital, liquidity, anti-money-laundering compliance, and exposure to crypto-market volatility.