Banks in the United States must be allowed to own the cryptocurrency

The world of financial services has always evolved, but recently there are signs of a seismic transformation. At the heart of this transformation is the rise of cryptocurrencies. Digital assets such as Bitcoin, Ethereum and a group of others – including Stablecoins – have moved from the margin of the financial system to the forefront, and they increased the attention of investors, organizers and traditional banks. As the encrypted currency market continues, one of the questions that have increasingly urgent is whether bank banks in the United States should be allowed to own encrypted currencies. If banks will remain relevant in the changing rapid financial scene, then participating in cryptocurrency markets is a necessary and logical step in banking development.

Changing organizational scene

Since the beginning of the category of encryption, the relationship between banks and cryptocurrencies has been tense. Organizational uncertainty, fears of volatility, and the perceived risks associated with digital assets have kept banks on the margin. Most banks have even moved away from providing any banking services to companies and individuals who have an interest in the category of digital assets.

However, the recent developments, especially from the Currency Observer Office (OCC), began to pave the way for the participation of the largest bank in the coded currency area. On March 7, 2025, OCC was released An explanatory message 1183 (IL 1183), which provided clearly the need for the ability of national banks to communicate with cryptocurrencies. The effect of this guidance was discussed in Banks in Crypto: Change the quiet OCC game.

The explanatory message 1183 confirmed the early directives that national banks can provide services related to the cryptocurrency-such as custody and trade-as long as they do so in a safe and sound way. The original, joint guidelines in An explanatory message 1170 In July 2020, it was never withdrawn, but nearly five years ago was practically implemented.

Although OCC showed a path for banks to provide encrypted currency services, the issue of the ownership of the direct bank is the encrypted currencies remains attached. In a joint statement issued by OCC, banks were warned of the Federal Department of Deposit Insurance (FDIC) and Federal Reserve in January 2023, against maintaining public encrypted currencies such as Bitcoin on their public budgets (reading: prohibited). The restriction, which is rooted in the concerns related to risks and stability, is increasingly feeling the lack of a step with the facts of the modern financial system. OCC, who has come the time to reconsider this situation, admitted Observer on behalf of the currency Rodney E. Hood Declare OCC withdrew from the joint statement. Taking into account safety and safety considerations, according to OCC, national banks have the ability to directly possess cryptocurrencies.

Bringing confidence and stability to a volatile market

Perhaps the strongest argument to allow banks to provide products and services in the encrypted currency, and to own direct cryptocurrencies, is their unique ability to bring confidence and stability to a market that it needs strongly. Banks have centuries of experience in managing complex financial assets, from stocks and bonds to foreign derivatives and stock. It works under some of the most strict regulatory frameworks in the world, with the requirements of capital reserves and liquidity and consumer protection that exceeds that of the exchange of medium technology or cryptocurrency.

Consider the outstanding collapses of platforms such as FTX, Celsius, Voyageer and Blockfi, which left investors from billions of losses. These failures confirmed the risks of working in a largely unorganized environment. On the contrary, banks offer an unparalleled level of security and control in the coil -currency area. FDIC, strict compliance standards, and strong risk management protocols mean that customers can deal with digital assets through a bank with much greater confidence than they can exchange independent encryption or regulation regulation. Allowing banks to own cryptocurrencies will take advantage of this infrastructure to create a safer and reliable environmental system for digital assets.

New revenue flows and competitive importance

Besides stability, there is a convincing status to allow banks to own services and provide them in encrypted currencies. It is no longer considered a financial currency market: it is a category of millions of dollars that continue to attract large capital of investors across the spectrum. Banks that can custody of digital assets, trade and retain digital assets are offered a share of this growing market. More importantly, engaging with cryptocurrencies will allow banks to remain competitive in an era where young generations – the higher and general Z – are increasingly digital assets in their financial lives.

Take nursery services as an example. As the institutional interest in cryptocurrencies grows, demand for safe storage solutions increases. Banks, with their firm experience in protecting assets, are in an ideal position to meet this need. If it is allowed to possess cryptocurrencies, banks can also provide innovative products-thinking of encryption backed loans or return generator accounts-which will attract cunning customers in technology and diversify revenue flows. In a financial scene where margins are under constant pressure, companies connected to technology and encryption exceed traditional banking activities, and banks cannot be forced to stay on the margin.

Risk Management

It goes without saying that the discussion of banks and cryptocurrencies will not be completed without addressing the issue of risks. It is known that the price of bitcoin, which is the largest cryptocurrency depending on the market value, swings by 20 % in one day, a level of fluctuations that attract the attention of experienced risk managers. Critics argued that by exposing banks to such fluctuations, they can endanger the crystallization currencies, and thus the wider financial system. It is a fair concern – but it ignores and does not give the appropriate credit to the confirmation of the banking industry to manage volatile assets.

Banks are already moving in turbulent markets such as foreign currencies and goods with advanced tools: diversification, hedge strategies, strict exposure limits. Applying these same principles to cryptocurrencies is possible and practical. Banks can reduce risks by focusing on established digital assets like Bitcoin and Ethereum, which have already been set digital commodities. Curricula with large market factors also provides greater liquidity and flexibility than newer and tested symbols. With appropriate organizational handrails – such as capital requirements specifically designed for encryption property – risks can be managed effectively.

The need for organizational clarity

Organizational clarity is the traditional power of financial markets in the United States of America, and one of the reasons why capital markets are the largest in the world. The American banking system is the growth engine for the greater economy, and this engine does not work well when there is uncertainty. OCC 1183 explanatory discourse is a giant step forward, but OCC does not have the bank’s ownership processing authority on encoding currencies on its own. With the newly re -confirmed OCC instructions, the joint statement of 2023 of federal organizers creates a contradictory message: banks can deal with cryptocurrencies, but they cannot completely participate. This ambiguity will continue to strangle innovation and leave banks that are not sure about how to follow, or whether they are allowed to move forward at all.

What is required is a clear and consistent frame that allows banks to own encrypted currencies and provide customers with products and services while ensuring safety and safety. OCC, FDIC and Federal Reserve should work together to update their guidelines, and rely on lessons from the past decade of the development of encrypted currency. The clear rules will not only protect consumers, but the banks also give confidence in investing in infrastructure – including Blockchain integration and cybersecurity – to support the ownership of digital assets.

A modern financial system

Finally, the benefits of cryptocurrency -owned currencies extend beyond the institutions themselves. The broader financial system will get the gains from the update that digital assets can bring. Blockchain technology, which supports cryptocurrencies, provides the ability to simplify the border payments, reduce the costs of transactions, and pay financial institutions to move towards real operations around the clock. Banks, with their wide networks and customer bases, are in perfect position to push these innovations forward. By owning and integrating encrypted currencies in their operations, banks can bridge the gap between traditional financing and the emerging digital economy.

Banks cannot also leave behind growing in the use of stablecoins. Customer expectations are increasing to update the payment infrastructure. Traditional payment bars are not enough, and customers demand alternatives. If the banks do not participate in the innovation of Stablecoins, Banks risk high -tech companies that completely make their role in space.

The road forward

The cryptocurrency revolution is here to survive, and banks must be allowed to play a major role in forming the future. Recent instructions from OCC are a positive organizational signal and a movement in the right direction, but it is only the beginning of what is required. Allowing banks to possess cryptocurrencies would accommodate their experience to bring confidence and stability to the market, cancel new opportunities for growth, and modernize the financial system of the digital era. The active participation of banks will help ensure that the volatility is in assets, and not in the stability of financial institutions that provide encrypted currency services to customers. Risks are real, but they are manageable – bonuses greatly outperform them. It is time for organizers to take the next step and allow banks to join the entire encryption revolution. The future of financing depends on this.