There has been a significant shift this year in the regulatory landscape for financial institutions seeking to engage in cryptocurrency activities. The federal banking agencies have started to indicate they will take a more hands-off approach when it comes to regulating financial institutions seeking to engage in cryptocurrency activities. For instance, the federal banking agencies (including the FRB, OCC and FDIC) have issued multiple guidance documents clarifying permissible crypto-related activities banks may engage in and that institutions no longer need to seek prior approval before engaging in certain traditional banking activities that involve cryptocurrencies.

 

Additionally, on July 18, 2025, President Trump signed into law the “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025” (the “GENIUS Act”), which creates a licensing and regulatory regime applicable to entities that issue a type of crypto-asset referred to as “stablecoins.” The GENIUS Act is the first federal licensing regime applicable to entities that issue stablecoins and creates standards for those seeking to participate in the stablecoin market.

 

The passage of the GENIUS Act could potentially give more legitimacy to stablecoins and their use as a means of payment in commercial or consumer transactions. This means there could be serious demand at some point for institutions to provide traditional banking services involving payment stablecoins.

 

Please join us at the BCG October Monthly Telephone Briefing where we will discuss recent important developments regarding stablecoins. Questions will be welcome. Handout to be posted Thursday, October 16th.