US banks take their first step into the crypto world – what’s next?

US banks take their first step into the crypto world – what’s next?

On May 28, 2025, major US banks are discussing possible expansion into the cryptocurrency space. However, despite increasing support from regulators, initial steps remain hesitant. For now, banks are focusing on pilot programs, partnerships and limited crypto trading. The Wall Street giants have been barred from much crypto activity in recent years due to strict regulations, forcing them to act cautiously. JPMorgan Chase CEO Jamie Dimon rules out custody of crypto assets and expresses skepticism about Bitcoin and other crypto systems.

US President Donald Trump has meanwhile spoken out in favor of accepting digital assets. There is a desire from banks for clearer guidelines from the government for crypto activities. A&O Shearman's Dario de Martino highlights that banks are taking a cautious approach because custody transactions involve high risks and often have thin margins. Banks plan to partner with already established crypto firms for custody operations.

Regulatory developments

Rick Wurster, CEO of Charles Schwab, reports positive signals from financial regulators. For example, the US Office of the Comptroller of the Currency has allowed lenders to participate in crypto activities. Additionally, the SEC has repealed accounting rules that made crypto trading costly for banks. Bank of America is planning to launch stablecoins, while Morgan Stanley is exploring its role as an intermediary for crypto transactions. Some banks are even discussing the possibility of issuing a common stablecoin.

However, anti-money laundering and regulatory compliance concerns remain. Banks are demanding clearer guidelines on anti-money laundering regulatory requirements and are wondering whether they can offer crypto loans or act as market makers for digital assets. A crucial point is the need for clear guidelines for digital assets in order not to hinder innovation on the one hand and to minimize risks to the financial system on the other.

Risks of the crypto system

Since the creation of the first Bitcoin in 2009, thousands of cryptocurrencies have emerged and continue to undergo rapid developments. Despite this expansion, the crypto system remains a small, isolated niche compared to the traditional financial system. The collapse of the FTX trading platform in autumn 2022 clearly demonstrated the risks of the system. European and international regulators are monitoring developments in crypto assets, the risks of which depend heavily on size and interconnectedness with the traditional financial system.

Regulation follows the principle of “regulate and contain” in order to minimize risks of contagion between the crypto and traditional financial systems. The European Regulation on Markets Regulation (MiCAR), published on June 9, 2023, will come into force on June 29, 2023, with application from mid-2024. MiCAR aims to create a harmonized European legal framework for unregulated cryptoassets and requires crypto system actors to respect corporate governance and capital adequacy rules.

In Germany, BaFin, in collaboration with the Bundesbank, supervises issuers of stablecoins and e-money tokens. The Basel Committee on Banking Supervision (BCBS) is developing international standards for banks in the crypto system, which are to be implemented by January 1, 2025. Discussions are also underway in the EU about revising the Capital Requirements Regulation (CRR) to appropriately treat cryptocurrencies. The importance of consistent and rapid implementation of regulation is repeatedly emphasized, especially in view of the national legal changes that are necessary for MiCAR in Germany.

It remains essential for banks to overcome the regulatory challenges in the crypto market and at the same time develop innovative solutions. They also need to keep an eye on the increasing demand for digital assets, which is being driven by the transformation of the financial sector.

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