US Banks Cautiously Explore Crypto Services Amid Regulatory Shifts

In May 2025, a quiet but significant change began unfolding in the U.S. banking sector. After years of hesitation, major financial institutions are cautiously exploring cryptocurrency services - encouraged by recent regulatory shifts and increasing client interest. While still early and limited in scope, this development signals a broader change in how traditional banks approach digital assets.

A New Regulatory Climate Opens the Door

The U.S. Office of the Comptroller of the Currency (OCC) took a major step forward in March 2025 with Interpretive Letter 1183, which confirmed that federally chartered banks may engage in crypto-related services - such as digital asset custody and certain stablecoin-related transactions - without needing prior written approval. This clarification removed a longstanding grey area and gave institutions more room to begin cautiously innovating.

Meanwhile, the Securities and Exchange Commission (SEC) earlier this year rescinded Staff Accounting Bulletin 121. That bulletin had previously required companies that safeguard cryptocurrencies for clients to list those holdings as liabilities on their own balance sheets - effectively making crypto custody too costly for traditional banks. The rollback, which took place in January 2025, was seen as a positive signal for banks interested in entering the space.

Together, these changes mark a more coherent and supportive regulatory posture - though much of the long-term framework is still evolving.

Banks Respond with Measured Moves

Despite the regulatory progress, major U.S. banks continue to approach the crypto space with caution.

JPMorgan Chase, for example, has offered limited crypto exposure to clients through third-party channels but remains conservative when it comes to holding digital assets itself. CEO Jamie Dimon recently reiterated that the bank would allow clients to purchase crypto but would not offer custody services. This reflects ongoing concerns about volatility, legal liability, and misuse within the digital asset space.

Charles Schwab appears more willing to expand. CEO Rick Wurster noted that current regulatory conditions are “pretty green,” and confirmed the company is working toward offering spot crypto online trading in the near future, though no firm timeline has been announced.

While banks like Morgan Stanley are said to be watching developments closely, most are taking a step-by-step approach - waiting for more clarity and infrastructure before diving deeper.

Crypto-Related Services Under Consideration

Several specific areas are being explored by U.S. banks, primarily through limited internal pilots or potential partnerships. These include:

• Spot trading of major cryptocurrencies, such as Bitcoin and Ethereum
• Custody solutions, potentially offered via third-party crypto custodians
• Blockchain-based settlement systems, including the use of stablecoins for cross-border payments
• Exploration of tokenised financial assets, which could improve liquidity and transaction efficiency in traditional markets

These initiatives are not yet publicly launched in most cases, but they illustrate the broader direction in which financial institutions are moving.

What This Means for the Future of Banking and Digital Assets

The cautious engagement of traditional U.S. banks with crypto marks a pivotal shift - one that would have seemed unlikely just a few years ago. Rather than avoiding the space altogether, institutions are beginning to explore how to offer crypto-related services within existing compliance frameworks.

However, significant challenges remain. Regulatory clarity is improving, but still fragmented across federal agencies. Banks must also consider cybersecurity risks, anti-money laundering requirements, and reputational concerns associated with emerging digital asset markets.

Still, the direction is becoming clear. With federal oversight easing and client interest rising, U.S. banks are laying the groundwork for a more integrated future - one where crypto and traditional finance increasingly overlap, even if cautiously.