Fed Chair: Banks 'Well Equipped' for Crypto Clients
Federal Reserve Chairman Jerome Powell has stated that “Banks are well equipped to serve crypto-related clients.” The comment is being interpreted as a significant signal that digital assets are moving further into the core of the traditional financial system.
This affirmation follows a period of regulatory recalibration. In April 2025, the Federal Reserve, along with the FDIC, formally withdrew supervisory letters that had previously required banks to notify them before engaging in crypto-asset activities. This rescission signaled a significant shift from the more restrictive guidance issued in the wake of crypto market turmoil in 2022 and 2023. The broader regulatory landscape has been substantially reshaped by the "Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act," signed into law in June 2025. This legislation provides a comprehensive framework for stablecoin issuance, requiring issuers to be approved and supervised by federal banking regulators and to maintain 1:1 reserves of high-quality liquid assets. In response to this clearer framework, federal agencies have been active. The Office of the Comptroller of the Currency (OCC) and the FDIC have been developing and proposing rules to implement the GENIUS Act, covering standards for capital, liquidity, and risk management for stablecoin issuers. The OCC also finalized a rule in early 2026 confirming that national trust banks can offer crypto custody and other related services. Major U.S. financial institutions are not waiting on the sidelines. An estimated 60% of the top 25 U.S. banks are now offering, developing, or exploring Bitcoin-related services. This goes beyond initial offerings of Bitcoin ETFs, with major players like BNY Mellon and Citigroup launching institutional-grade custody services for digital assets. JPMorgan Chase is leveraging a permissioned public blockchain for its JPM Coin and offering a deposit token for institutional clients, while Bank of New York is providing tokenized deposits to streamline collateral workflows. Even smaller community banks and credit unions are exploring how to offer digital asset services to meet growing member demand. This push into digital assets is not without historical context. The current collaborative tone contrasts sharply with the "Operation Choke Point 2.0" allegations of 2023, where crypto firms accused regulators of trying to cut the industry off from the banking system. Powell himself addressed these concerns in January 2025, stating that examiners should not encourage banks to drop law-abiding crypto customers.
