Why U.S. Banks Are Suddenly Embracing Crypto

Before the Senate Banking Committee even gaveled its hearing to order, crypto had already stolen the show. The Office of the Comptroller of the Currency dropped a bombshell stablecoin proposal, signaling a dramatic shift in Washington's approach to digital assets.

The Regulatory About-Face

OCC chief Jonathan Gould unveiled rules to implement the GENIUS Act, last year's stablecoin legislation. The proposal covers everything from reserve requirements to asset custody and customer redemption processes.

"The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish in a safe and sound manner," Gould stated.

Fed Vice Chair for Supervision Michelle Bowman echoed the sentiment, promising "clarity regarding the treatment of digital assets to ensure that the banking system is well placed to support digital asset activities."

This marks a 180-degree turn from years of regulatory hesitancy that kept banks at arm's length from crypto.

Follow the Money Trail

But Senator Elizabeth Warren sees a different picture. She's demanding answers about the rapid approval of Erebor Bank, a tech-focused institution planning to offer digital asset services.

The bank's backers "have been major donors to President Donald Trump, Vice President Vance, and the GOP," Warren noted. More eyebrow-raising: the lawyer who filed the bank's charter application was promptly hired as a senior deputy comptroller at the OCC.

"If Erebor's national bank charter was not granted in accordance with law and regulation, and instead represented a corrupt political favor to the President's billionaire supporters in Silicon Valley, it would have to be terminated," Warren wrote.

The Bigger Crypto Wave

This regulatory shift reflects broader momentum. Indiana just passed legislation allowing public retirement funds to invest in bitcoin, joining at least 21 states exploring digital asset investments for public funds.

Yet the same state banned crypto ATMs after law enforcement reported $400,000 in fraud losses in Evansville alone during 2025.

FDIC Chairman Travis Hill has already begun advancing GENIUS Act proposals, while the broader crypto market shows mixed signals—bitcoin recently fell below $67,000 after Wednesday's gains.