Major U.S. banks are cautiously exploring opportunities in cryptocurrency as regulatory conditions begin to show signs of loosening. While discussions about crypto expansion are happening behind closed doors at several financial institutions, industry executives say that any steps taken will be measured and limited to pilot programs, strategic partnerships, or small-scale trading initiatives. These efforts reflect a growing interest in the sector, especially as new signals from Washington suggest a more crypto-friendly environment could be emerging.
However, top banks remain hesitant to move aggressively. Executives say no one wants to be the first to dive in too deep, especially given the fast-changing regulatory landscape. If a leading bank successfully launches a crypto initiative without regulatory backlash, others are expected to follow quickly. JPMorgan CEO Jamie Dimon remains a vocal skeptic, reaffirming that while his bank allows bitcoin purchases, it won’t offer crypto custody services. “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin,” he said, likening the bank’s stance to supporting personal choice without full endorsement.
Regulatory Shifts Fuel Optimism but Uncertainty Lingers
The recent shift in U.S. banks policy toward digital assets has made financial institutions cautiously optimistic. President Donald Trump has embraced the crypto community, calling himself the first “crypto president” and pledging support for digital innovation. His administration’s regulators, including the U.S. Office of the Comptroller of the Currency, have taken steps to ease restrictions, allowing banks to participate in some crypto activities, including stablecoin management and distributed ledger networks. The Securities and Exchange Commission also removed earlier accounting guidance that made crypto dealings more costly for banks.
Despite these developments, most institutions are not jumping in headfirst. Legal experts and executives note that while the green lights from regulators are encouraging, they do not represent blanket approval. Dario de Martino, a partner at A&O Shearman, emphasized that traditional lenders are using the opportunity to engage, not rush into the market. Many are leaning toward partnerships with existing crypto firms for custody services, given the thin margins and risks involved in managing digital assets. Meanwhile, Charles Schwab is planning to introduce spot crypto trading within the next year, seeing increasingly favorable regulatory indicators.
Next Steps and What’s Holding Banks Back
Large banks, including Bank of America and Morgan Stanley, are mapping out potential roles in the crypto ecosystem. Bank of America is considering launching a stablecoin, while Morgan Stanley is exploring how it can act as a crypto transaction intermediary or integrate crypto into its E*Trade platform. Talks are even underway among some banks to jointly issue a stablecoin, though these discussions remain in early stages. Cantor Fitzgerald has already committed $2 billion to its new bitcoin financing business, signaling a growing appetite among finance heavyweights.
Yet, full-scale adoption hinges on clearer, consistent regulation. Banks are demanding uniform anti-money laundering rules and coordination between banking and market regulators before taking further action. Matthew Biben, a financial law expert, noted that while the environment is improving, compliance concerns remain central. Some U.S. banks are also frustrated by the lack of banking regulator involvement in the Trump administration’s crypto working group. Until greater clarity emerges, most banks are expected to stick with experimental crypto programs and wait for stronger regulatory assurance.
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