Congressional Research Service: The scope of banks’ crypto activities may be jointly defined through legislation and regulation
BIBIBI
AT A GLANCE
The Congressional Research Service said that the scope of banks’ crypto activities may be jointly defined through congressional legislation and regulatory discretion.
Article
Congressional Research Service: The scope of banks’ crypto activities may be jointly defined through legislation and regulation
PANews October 2 reported that the Congressional Research Service (CRS）September 30 released a report titled “Crypto and Bank-Permissible Activities,” which states that U.S. banks’ crypto activities must meet two standards: whether they constitute or are incidental to “the business of banking,” and whether they affect bank safety and soundness. The report said that since 2017 year, banking regulators have adjusted crypto policy multiple times alongside changes in administration. Congress may clarify through legislation whether to permit or prohibit the relevant activities, continue granting discretion to regulators, or adopt a combination of both approaches. The report also noted that the House and Senate versions of the 《CLARITY Act》 differ in the scope of authorization for banks’ crypto activities, with the Senate version proposing to permit banks to engage in 11 types of crypto activities.
According to PANews, the Congressional Research Service (CRS) released the September 30 report “Crypto and Bank-Permissible Activities.”
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The report states that U.S. banks must determine whether the relevant activities constitute or are incidental to “the business of banking,” and whether they affect bank safety and soundness.
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The report said that since 2017 year, banking regulators have adjusted crypto policy multiple times alongside changes in administration.
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The report states that Congress may permit or prohibit the relevant activities through legislation, continue granting discretion to regulators, or combine the two approaches.
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The report said that the House and Senate versions of the 《CLARITY Act》 differ in their scope of authorization, with the Senate version proposing to permit banks to engage in 11 types of crypto activities.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This report covers a policy research report, not a new law that has already taken effect. The report holds that determining whether a bank may conduct a particular crypto activity requires considering both whether the activity falls within the activities a bank may undertake and whether it could affect the bank’s safety and soundness. Congress and regulators may both participate in defining which specific activities are permitted.
Why it matters to readers
The scope of banks’ participation in crypto activities may depend on future legislative text and regulatory judgments. The report also mentioned differences between versions of the 《CLARITY Act》, indicating that the specific scope of authorization has not yet been unified.
Beginners should understand this as a discussion of a policy framework, rather than as meaning that banks have already been authorized to conduct 11 types of crypto activities. Going forward, attention should be paid to whether the bill is amended or passed, and whether regulators issue formal rules.
Risks and unknowns
The available materials do not include the original Congressional Research Service report, so the summary in the article cannot be independently verified.
The original text only states September 30, and does not specify the year in which the report was released.
The specific content of the 11 types of crypto activities that the Senate version proposes to permit is not listed.
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The full differences between the House and Senate versions of the 《CLARITY Act》 are not explained.
The materials do not indicate that the relevant bill has been passed or taken effect.
Related concepts
banking activities
This term is not in the glossary yet. Browse related concepts in the glossary.
