U.S. Congress Debates Expanding Crypto and Stablecoin Authority for Banks

The U.S. Congress is evaluating new legislation that could permit banks and credit unions to hold digital assets, issue stablecoins, and utilize blockchain technology. According to a Congressional Research Service report, lawmakers are debating whether these activities should be officially classified as bank-permissible. While the SEC has initiated efforts to develop clearer regulatory frameworks for bank-handled digital assets, the report notes that legislative action is required to ensure long-term regulatory stability and prevent frequent policy reversals. The discussion follows the passage of the GENIUS Act, which previously authorized stablecoin-related activities for bank-owned businesses.