US Lawmakers Propose Sweeping Crypto Rules for Banks and Credit Unions

Lawmakers in the US Congress are considering legislation that would expand and clarify the rules for banks, credit unions, and stablecoins. The proposal aims to bring cryptocurrency infrastructure more directly into the regulated banking system.

The bill would establish clearer statutory treatment for activities related to digital assets, including custody and participation in blockchain-based financial networks. It would also specify which activities regulated institutions can conduct while leaving prudential requirements with existing banking supervisors.

Banks could potentially use distributed ledgers to transfer deposits, settle transactions, manage tokenized securities, and communicate with other financial institutions. This would place blockchain alongside other technologies banks can use to provide otherwise permissible financial services.

Stablecoins are significant because they sit at the intersection of crypto markets and conventional banking. The proposal aims to clarify how stablecoin rules interact with banks and federally insured credit unions, including their ability to issue stablecoins or participate in the infrastructure supporting them.