US Banks Discuss Cautious Crypto Expansion Amid Regulatory Signals

Major U.S. banks are cautiously exploring expansion into cryptocurrencies amid a more favorable regulatory environment, focusing on pilot programs, partnerships, and limited crypto trading. Despite the regulatory easing, large lenders remain hesitant to be first movers, fearing potential challenges if rules change, opting instead to follow successful early adopters. JPMorgan Chase CEO Jamie Dimon remains skeptical of significant crypto involvement, particularly in custody services, citing concerns over leverage, money laundering, and misuse within the bitcoin ecosystem, though he supports clients' rights to buy bitcoin. Many banks plan to enter cryptocurrency custody businesses through partnerships with established crypto firms rather than developing these services independently. The administration of former President Trump has expressed strong support for crypto adoption, promising clearer guidelines and a strategic bitcoin reserve, which has encouraged banks to consider opportunities cautiously. However, financial institutions continue to seek clearer governmental guidance, especially regarding compliance and anti-money laundering rules, before fully committing to broader crypto activities.