United States (U.S.) lawmakers are considering new rules that would allow banks and credit unions to directly hold cryptocurrencies and issue regulated stablecoins.
The discussions build on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which established a federal framework for payment‑stablecoin issuance.
As Congress evaluates whether traditional financial institutions should be permitted to custody crypto and issue stablecoins under prudential supervision, the United States appears to be moving toward a more integrated digital‑asset system—one where regulated banks play a central role in stablecoin markets.
Building on the GENIUS Act
U.S. lawmakers are reviewing proposals that would allow federally regulated banks and credit unions to hold cryptocurrencies on their balance sheets and issue stablecoins under federal or certified state oversight.
It depicts departure from earlier regulatory ambiguity, where banks faced unclear guidance on whether they could engage in crypto custody or stablecoin issuance without violating supervisory expectations.
The discussions are closely tied to the GENIUS Act, signed into law on July 18, 2025, which created a comprehensive regulatory framework for payment stablecoins.
The act allows stablecoin issuers to be depository institutions, nonbank financial firms, or commercial firms—provided they meet strict reserve, disclosure, and compliance requirements. Banks and credit unions that issue stablecoins must be federally regulated, while smaller non‑depository issuers may choose between federal and state oversight.
Congressional debates have focused on several contentious issues: preventing illicit finance, determining whether commercial firms should be allowed to issue stablecoins, and establishing clear rules for foreign stablecoin issuers seeking access to U.S. markets.
Lawmakers are also evaluating how banks should treat crypto assets on their balance sheets and what prudential standards should apply.
The Treasury Department has begun issuing proposed rules to implement the GENIUS Act, including statutory prohibitions and limitations on payment‑stablecoin issuance, offer, and sale. These rules are currently open for public comment.
Agendas of the Debate
The congressional debate indicates a turning point in how the United States integrates digital assets into its financial system.
For years, banks have been hesitant to engage with crypto due to unclear regulatory expectations. Allowing banks and credit unions to hold crypto and issue stablecoins under federal oversight would bring digital assets into the regulated core of the U.S. financial system.
The new rules could significantly expand stablecoin adoption. Stablecoins are already used extensively in crypto trading and cross‑border settlement, but their use in retail payments and institutional finance has been limited by regulatory uncertainty.
A clear framework enabling banks to issue stablecoins could accelerate mainstream adoption.
The debate also implicates that stablecoins may play a critical role in future payment systems. The GENIUS Act requires issuers to maintain high‑quality liquid reserves—such as Treasury bills, deposits at insured banks, and government money‑market funds—ensuring that stablecoins remain fully backed and redeemable.
Moreover, allowing banks to hold crypto could improve market stability.
Banks are subject to strict risk‑management, capital, and liquidity requirements. Bringing crypto custody into regulated institutions could reduce systemic risk and improve consumer protection.
United States radiate the desire to remain competitive in global digital‑asset innovation. As jurisdictions like Hong Kong, Singapore, and the EU advance their own stablecoin frameworks, U.S. policymakers are under pressure to modernize domestic rules.
What to Expect Next
Congress’s consideration of new rules allowing banks and credit unions to hold crypto and issue stablecoins marks a pivotal moment in U.S. digital‑asset policy.
Building on the GENIUS Act’s regulatory framework, lawmakers are evaluating how traditional financial institutions can safely integrate digital assets into their operations.
The outcome will shape the future of stablecoin markets, banking innovation, and the United States’ role in global digital finance.
