Major U.S. banks are quietly preparing to expand into cryptocurrency markets, encouraged by increasingly favorable signals from Washington but still wary of lingering regulatory uncertainty. According to a Reuters report, top lenders are laying the groundwork for limited crypto engagements through pilot programs, strategic partnerships, and custodial services.
While the new landscape appears friendlier, executives at several large financial institutions emphasized that no bank wants to be the first to go all in. “If a major firm expands without issues, others will be fast followers,” one industry insider told Reuters. Most banks prefer to wait and observe, avoiding moves that might later conflict with evolving regulations.
The shift comes as the U.S. political climate around digital assets grows more permissive. Former President Donald Trump has positioned himself as a pro-crypto candidate ahead of the 2024 election, even declaring he would become the first “crypto president.” His administration has already made overtures to the crypto industry and signaled openness to integrating digital assets into federal strategy, including talk of establishing a national Bitcoin reserve.
The most encouraging sign for banks has come from regulators themselves. Under Trump’s influence, the U.S. Office of the Comptroller of the Currency (OCC) has given green lights for banks to explore custody services, stablecoin activities, and distributed ledger participation. Meanwhile, the Securities and Exchange Commission (SEC) recently scrapped restrictive accounting guidance that had previously made crypto ventures prohibitively expensive for banks.
Despite the positive momentum, not all leaders are on board. JPMorgan CEO Jamie Dimon remains deeply skeptical. Speaking to investors last week, Dimon reiterated his opposition to direct involvement in crypto custody or large-scale operations. “When I look at the bitcoin universe — the leverage, the misuse, the money laundering issues — I’m not a fan,” he said. “We’re going to allow you to buy it, but we’re not going to custody it. I defend your right to buy bitcoin, like I defend your right to smoke.”
Yet the tide appears to be turning regardless. Charles Schwab CEO Rick Wurster noted earlier this month that regulatory signals were now “flashing pretty green,” bolstering Schwab’s plan to launch spot crypto trading within the next year. Bank of America CEO Brian Moynihan has publicly floated the idea of launching a stablecoin, while Morgan Stanley is exploring crypto market-making and considering adding digital assets to its E-Trade platform.
Behind closed doors, some of the largest banks are also discussing the possibility of launching a joint stablecoin, sources told Reuters, though talks remain in early stages.
Even so, significant hurdles remain. Banks are demanding more consistency in guidelines across regulators, particularly on anti-money laundering (AML) and know-your-customer (KYC) compliance. Many want greater clarity on whether they can participate in lending or serve as market makers for crypto.
“The shift in the stance is encouraging,” said Dario de Martino, an M&A partner at A&O Shearman. “But banks are still viewing the changes as an opportunity to engage, not a free pass.”
That caution is echoed by Matthew Biben of King & Spalding, who warns that “while it’s a much-improved environment, banks will continue to have concerns around AML and regulatory compliance.”
Another source of frustration: the absence of banking regulators in the new working group on crypto, led by Trump-appointed crypto czar David Sacks. “That has to change if big banks are going to have a meaningful role,” said one executive familiar with the matter.
For now, the crypto frontier remains a space of slow, careful experimentation. But with political winds shifting and regulatory gates creaking open, Wall Street’s crypto moment may be closer than it seems.
