US banks may soon have broader access to crypto services under the Trump administration, according to sources. The Federal Deposit Insurance Corporation (FDIC) plans to revise banking regulations to allow banks to engage in certain crypto activities, such as custody services and “tokenized deposits,” without requiring prior regulatory approval. This potential change comes after regulators previously limited major banks’ exposure to Bitcoin and other digital assets during the last major crypto market crash to protect them from financial consequences. However, the regulatory landscape could shift under the Trump administration, potentially enabling banks to integrate crypto services. Former President Donald Trump, who has launched his own digital token, seems to be fostering a pro-crypto government, which could allow traditional financial institutions to compete with industry leaders like Coinbase Global, Robinhood Markets, and BlackRock.
The FDIC’s planned revisions aim to relax previous restrictions that mandated banks to seek regulatory approval before entering the crypto market. Some financial institutions have already started discussions with policymakers to advocate for providing crypto asset custody and incorporating blockchain-based tokenized deposits.
Bank of America CEO Brian Moynihan expressed strong interest in this potential move, stating that banks would embrace the opportunity if there was regulatory clarity.
Currently, banks have limited involvement in the crypto space. However, expanding their role to offer a wider range of services, such as depositing on blockchains, would mark a significant departure from the policies of the Biden administration. The previous administration actively discouraged banks from having connections to crypto due to concerns about illicit activities and risks to financial stability.
*This is not investment advice.
