The financial industry is undergoing a major transformation, driven by the rapid rise of cryptocurrencies. Once considered a fringe asset class, digital currencies like Bitcoin, Ethereum, and stablecoins have become mainstream, drawing interest from investors, regulators, and traditional financial institutions. As the crypto market continues to evolve, a pressing question emerges: Should banks in the United States be allowed to own cryptocurrencies? To stay competitive in the modern financial landscape, integrating cryptocurrency ownership into banking operations is not just beneficial—it’s essential.
Evolving Regulations and Banking Restrictions
Historically, the relationship between banks and cryptocurrencies has been complicated. Concerns over regulatory uncertainty, volatility, and risk have largely kept traditional banks from fully engaging with digital assets. Many financial institutions have even avoided providing services to businesses and individuals involved in the crypto space.
However, recent regulatory developments are reshaping the landscape. On March 7, 2025, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1183 (IL 1183), offering much-needed clarity on the role of national banks in the cryptocurrency sector. This guidance reinforced that banks can provide crypto-related services—such as custody and trading—if done in a secure and compliant manner. This aligns with previous guidance from Interpretive Letter 1170, issued in July 2020, which remained in place but was largely sidelined until now.
The Push for Direct Cryptocurrency Ownership
While banks are now able to offer crypto-related services, direct ownership of digital assets remains a controversial topic. A joint statement from the OCC, Federal Deposit Insurance Corporation (FDIC), and Federal Reserve in January 2023 advised banks against holding cryptocurrencies like Bitcoin on their balance sheets, citing risk and stability concerns.
However, the OCC has since reconsidered this stance. Acting Comptroller of the Currency Rodney E. Hood recently announced that the OCC has withdrawn from the joint statement, signaling a shift in policy. Now, under proper risk management and compliance measures, national banks may have the ability to own cryptocurrencies outright.
The Future of Banking and Crypto Integration
As digital assets continue to reshape the financial world, allowing banks to own and manage cryptocurrencies could be a logical step in the evolution of the banking sector. With clear regulatory frameworks and risk mitigation strategies, banks could safely participate in the crypto economy, benefiting both institutions and their customers.
The conversation surrounding cryptocurrency ownership in banking is far from over, but one thing is clear: the financial system is changing, and banks must adapt to remain relevant in this new digital era.
Original Article: Forbes, "Banks In The USA Should Be Permitted To Own Cryptocurrency."
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