Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
A series of sweeping rollbacks of cryptocurrency regulation has raised alarm bells in the banking sector. Although designed to modernize and innovate financial services, many warn that these looser rules threaten the average American’s savings. After all, cryptocurrency is notorious for its volatility—something critics argue has no place in an already fragile banking system.
Understanding how cryptocurrency is seeping into mainstream banking (and the risks it poses) gives investors valuable insights into the stability of their wealth and the importance of proper diversification. Let’s explore how these recent changes transform the risk landscape for banks and the US financial system.
The Trump Administration Embraces Crypto
No administration has done more to bring crypto from the speculative fringe into the financial mainstream than Trump 2.0. The president declared his intention to build the “crypto capital of the world,” and the speed and scale of recent changes are quickly bringing that vision to life.
The Commander-in-Chief and the First Lady even launched personal memecoins right before the inauguration, perhaps further fueling the admin’s efforts to wind down oversight and minimize compliance standards.
The New Laws Reshaping Crypto’s Role in Banks
SEC Rescinds Crypto Custody Accounting Rule
Reform: Staff Accounting Bulletin No. 122 (SAB 122)
Date: January 23, 2025
One of the administration’s first steps to open the banking sector to cryptocurrency was changing how these assets were labeled on banking balance sheets. Under a Biden-era policy, entities had to automatically label cryptocurrencies held for customers as liabilities, requiring banks to maintain certain assets to offset potential losses.
Known as a capital requirement, this regulatory standard is designed to prevent publicly traded companies, in this case banks, from overleveraging in risky assets. Through SAB 122, the Securities and Exchange Commission (SEC) threw away this guidance, allowing banks to make a case-by-case judgment about a cryptocurrency’s potential liability.
OCC Clarifies Banks’ Authority on Crypto Activities
Reform: Interpretive Letter 1183
Date: March 7, 2025
Shortly after scrapping the automatic classification of cryptocurrencies as liabilities, the federal government broadened the scope of what banks can legally do with digital assets. More specifically, the Office of the Comptroller of the Currency (OCC) peeled back earlier restrictions to allow “national banks and federal savings associations” to engage in three specific “crypto-asset activities”:
- Crypto-Asset Custody – The safeguarding of customers’ digital tokens.
- Distributed Ledger Technologies – The use of blockchain networks to verify transactions.
- Stablecoin Activities – The holding of reserves to back stablecoins or process payments using them.
The letter also instructed the government to view all bank activities equally, regardless of the technology used.
FDIC Removes Pre-Approval Requirement for Crypto Activities
Reform: Financial Institution Letter 7-2025 (FIL-7-2025)
Date: March 28, 2025
In a similar move, the Federal Deposit Insurance Corporation (FDIC) lifted pre-approval requirements regarding crypto activities. Prior, institutions backed by the FDIC, the strongest federal backstop protecting customers from bank failures, needed to request permission to engage in a range of cryptocurrency-related pursuits. With FIL-7-2025, Trump 2.0 removed these barriers, paving the way for cryptocurrency to make inroads into the banking sector.
DOJ Disbands National Cryptocurrency Enforcement Team
Reform: Memorandum by Deputy Attorney General Todd Blanche
Date: April 7, 2025
In addition to removing barriers for banks entering the cryptocurrency space, the federal government has dramatically scaled back its oversight. The Department of Justice (DOJ) disbanded the National Cryptocurrency Enforcement Team (NCET), which had been the government’s primary arm for prosecuting crypto-related regulatory violations.
Instead, the DOJ is now focusing on the illicit use of digital currencies for “terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing”. This narrower enforcement focus eases pressure on banks, giving them significantly more freedom to explore crypto ventures with reduced scrutiny.
Trump Signs Bill Nullifying IRS’s Expanded Crypto Broker Rule
Reform: House Joint Resolution 25 (H.J.Res.25)
Date: April 10, 2025
The latest crypto-friendly move by Trump is the signing of H.J.Res. 25, which nullified a Treasury Department rule finalized under the Biden administration. The original rule expanded the IRS’s definition of “broker” to include many cryptocurrency platforms—potentially including some DeFi services—and would have required them to report user transactions to the IRS.
Struck down under the Congressional Review Act, the rule is not only canceled but also barred from being reissued in the future. By removing this reporting obligation, banks may find it easier to work with DeFi platforms and other crypto-focused companies, exposing investors to more risks associated with these digital assets.
Bitcoin Meets Uncle Sam
The administration’s embrace of cryptocurrency isn’t only opening the doors for the banking sector. The US government is actively pursuing the integration of digital assets into national fiscal policy. The White House has ordered the creation of a Strategic Bitcoin Reserve and Digital Asset Stockpile.
- Strategic Bitcoin Reserve – A national reserve of Bitcoin that would seek to strengthen the US reserves by utilizing seized digital assets.
- Digital Asset Stockpile – A broader assortment of federally-managed cryptocurrencies for strategic use and policy integration.
Shield Your Wealth
The administration’s full embrace of cryptocurrency could reshape markets and your financial future. Staying informed about the rise of this digital monetary system is essential for protecting your wealth. That’s why we’ve created a comprehensive Central Bank Digital Currency (CBDC) report to keep investors up to date on these critical developments.