U.S. Regulators Allow Banks to Hold and Use Cryptocurrency for Permissible Banking Activities in 2025

In a major policy shift for the financial industry, U.S. banking regulators have issued new guidance allowing national banks to hold and use cryptocurrency for specific, permissible banking activities. This change reverses earlier restrictions that discouraged banks from directly engaging with public blockchain networks or holding native digital assets on their own balance sheets.

The updated position confirms that banks may maintain limited amounts of cryptocurrency when it is necessary to support activities already considered part of the business of banking such as paying blockchain network fees, validating transactions, or testing digital asset platforms. These activities have become increasingly relevant as banks develop blockchain-based payment systems, custody services, and settlement solutions.

Why the Policy Change Matters

Historically, banks were constrained from using public blockchain networks due to supervisory guidance that required additional approvals and imposed heavy compliance oversight. This created operational barriers, especially for institutions that wanted to offer crypto custody, stable coin related services, or blockchain-driven settlement tools.

The new guidance removes many of these roadblocks. Banks can now directly hold the native tokens needed to pay transaction fees on public blockchains. This reduces reliance on third-party intermediaries and allows institutions to operate, test, and manage blockchain systems more efficiently. It also signals a broader regulatory acceptance of blockchain technology within the traditional banking framework.

What Banks Can Do Under the Updated Rules

Under the revised policy, banks are permitted to:

• Hold cryptocurrency in small, operationally necessary amounts

• Use crypto to pay network fees on public blockchains

• Receive network rewards or fees when operating validator or node services

• Conduct complete testing of digital asset platforms before offering customer-facing products

• Integrate crypto-supported processes into payment, settlement, and custody systems

These activities must still follow existing requirements for risk management, cybersecurity, operational controls, and anti-money-laundering compliance. Banks must demonstrate that their crypto holdings are limited to what is reasonably required for operational needs, not for speculation or proprietary trading.

Impact on the Banking Sector

This regulatory shift opens the door for wider adoption of blockchain within the U.S. financial system. Banks can now participate directly in on-chain operations, paving the way for faster transaction settlement, more efficient payments infrastructure, and enhanced digital asset services.

For the broader crypto industry, the move is expected to strengthen integration between traditional financial institutions and blockchain ecosystems. It may also encourage more banks to explore tokenized deposits, real-time on-chain settlement, and blockchain-based financial products.

FAQs

1. What did regulators change regarding banks and cryptocurrency?

Banks are now allowed to hold and use cryptocurrency when necessary for approved banking activities such as paying network fees and operating blockchain-based services.

2. Can banks trade or speculate in cryptocurrency under this guidance?

No. The permission applies strictly to operational needs, not investment or speculation.

3. Does this apply to public blockchain networks?

Yes. Banks may now directly interact with public blockchains when necessary for their services.

4. Are state-chartered banks included in this guidance?

The policy primarily applies to nationally supervised banks. State banks may receive similar flexibility depending on state regulations and oversight.

5. What must banks do before holding crypto assets?

They must implement strong risk-management practices covering technology, compliance, cybersecurity, and liquidity risks, ensuring the crypto is held only for operational purposes.