Congressional Research Service Report Highlights Regulatory Uncertainty for US Banks in Crypto
A new Congressional Research Service report finds that US bank crypto policies are highly dependent on agency leadership, prompting calls for clearer legislative guidance.
A report published September 30, 2026, by the Congressional Research Service suggests that the ability for US banks to engage with digital assets like Bitcoin is largely determined by who leads federal regulators rather than established law. The report, titled Crypto and Bank-Permissible Activities, characterizes the current regulatory environment as ambiguous and prone to shifts based on presidential administrations.
The Congressional Research Service notes that the Office of the Comptroller of the Currency, the Federal Reserve, and the Federal Deposit Insurance Corporation have frequently reversed policies since 2017. These changes have historically aligned with the political leanings of different administrations, such as the tightening of rules between 2021 and 2024, followed by the issuance of Interpretive Letter 1183 by the Office of the Comptroller of the Currency in March 2025, which eased certain restrictions.
Regulators currently evaluate bank activities using a two-part test that assesses whether an action is part of the business of banking and what safety-and-soundness risks it may pose. The report highlights that there is no consensus among regulators on how to apply these criteria to crypto, leading to inconsistent outcomes where the same activity may be viewed differently by successive officials.
To address this instability, the report outlines three potential paths for Congress. Lawmakers could continue to defer to regulators, pass legislation that explicitly defines permitted and prohibited crypto activities, or adopt a hybrid approach that combines statutory rules with some level of regulatory discretion.
Some legislative efforts are already underway. The GENIUS Act, enacted in July 2025, allows bank subsidiaries to issue stablecoins. Additionally, the House has passed the CLARITY Act, which aims to create a broader framework and explicitly permit banks to use digital assets for authorized activities. However, the report emphasizes that until such proposals complete the full legislative process, the regulatory landscape remains subject to change.
