Banks Can Now Hold Crypto — But Outdated Rules Might Stop Them From Actually Doing It
46d ago · 1 source
Despite regulatory changes that now permit banks to custody and hold cryptocurrency, legacy banking rules and compliance frameworks may effectively prevent most banks from taking advantage of these new permissions. Outdated capital requirements, accounting standards, and risk management guidelines create practical barriers that keep crypto outside the traditional banking system.
WHY IT MATTERS
Think of it like this: imagine the government says restaurants can now serve a new type of food, but the health code still requires equipment that doesn't work with that food. Technically it's allowed, but practically it's nearly impossible. That's what's happening with banks and crypto right now. Banks have gotten the green light to hold crypto for customers, but the old rulebook they have to follow — things like how much emergency cash they need to keep on hand, or how they report crypto on their books — makes it really expensive or risky for them to actually do it. This matters because when banks can easily offer crypto services, it becomes much simpler and safer for everyday people to access digital assets through institutions they already trust.
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Educational only — not financial advice.