US Treasury Secretary Scott Bessent has signaled that traditional banks and the crypto industry could eventually offer similar financial products, as lawmakers debate how to regulate digital assets without destabilizing the banking system.
Banks and Digital Assets Moving Closer
Speaking before the Senate Banking Committee, Bessent said it is realistic that banks and crypto platforms will increasingly overlap in services over time. He noted that discussions are already underway with small and community banks about participating in the digital asset economy, suggesting a future where blockchain-based products coexist with traditional financial offerings.
This convergence, however, depends heavily on regulatory clarity. Bessent stressed that the crypto sector cannot move forward without clear rules and urged industry participants to support pending market structure legislation known as the CLARITY Act.
Regulatory Balance and Market Oversight
Bessent emphasized the need for oversight that protects consumers and the financial system while still allowing innovation. He framed regulation as a way to integrate crypto into the US financial framework rather than pushing activity offshore.
Deposit Stability Remains a Key Concern
One of the main obstacles facing the legislation is concern over bank deposit volatility, particularly related to stablecoins. Bessent warned that unstable deposits could undermine banks’ ability to lend locally. To address this, policymakers and crypto firms are exploring compromises, including a larger role for community banks in stablecoin infrastructure.
If regulatory hurdles are resolved, the gradual blending of banking and crypto services could reshape how digital and traditional finance interact in the US.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.