U.S. Banking Groups Urge Stablecoin and Crypto Regulatory Changes That Could Impact Banks’ Competitiveness

The groups request clearer statutory frameworks to reduce regulatory ambiguity that limits banks’ ability to offer compliant crypto services while protecting consumers and systemic stability.

How do proposed stablecoin rule changes affect banks and customers?

Revised stablecoin rules aim to define custody, reserve requirements, and permissible bank involvement. Short, clear standards would allow banks to offer custody and settlement services under a known compliance framework.

The American Bankers Association and Bank Policy Institute argue clearer rules will reduce legal uncertainty. Rob Nichols, President & CEO, American Bankers Association, said, “ABA is committed to helping banks responsibly meet customer demand for digital assets, including stablecoins and other cryptocurrencies, while mitigating the risks these emerging products and technologies may pose to consumers and the broader financial system.”

Why do banks say current rules harm U.S. competitiveness?

Banking leaders say strict or unclear rules push activity offshore or to non-bank fintechs. They cite international competitors operating under more permissive regimes as a competitive threat.

Regulatory ambiguity can shrink product offerings and slow innovation within traditional banks. An FDIC update on key policy issues related to banking is often referenced by industry advocates as evidence that regulatory dynamics materially affect market strategy.

Frequently Asked Questions

Which organizations are leading the push for crypto policy amendments?

The primary advocates are the American Bankers Association and the Bank Policy Institute, supported by multiple U.S. banks and industry groups that seek clearer federal guidance on crypto and stablecoins.

What specific changes are banking groups requesting from regulators?

Requests focus on statutory clarity for custody and reserve treatment, explicit permission frameworks for bank custody and settlement services, streamlined supervisory expectations, and harmonized rules across federal agencies.

How might policy changes influence the banking sector’s digital asset services?

Clearer policy could enable banks to expand custody, payments, and settlement services for digital assets while maintaining consumer protections and capital and liquidity standards aligned with other deposit activities.

Key Takeaways

• Regulatory clarity needed: Ambiguous rules are cited as the main barrier to bank participation in digital assets.
• Competitiveness risk: U.S. banks may lose market share to foreign firms and fintechs without amendments.
• Policy balance: Proposed changes emphasize enabling innovation while protecting consumers and systemic stability.

Conclusion

COINOTAG reports that U.S. banking groups, led by the American Bankers Association and Bank Policy Institute, are actively pushing for federal crypto policy amendments aimed at restoring regulatory clarity and enabling safe bank participation in digital-asset markets. Ongoing engagement with regulators and policymakers will determine whether proposed changes materialize and how they reshape bank-operated crypto services. Watch for legislative and agency responses in the coming months.