Bank of America Report: Cryptocurrency Regulation Takes Effect, Banks Accelerate Towards On-Chain Future

According to market news, a recent report from Bank of America indicates that as U.S. cryptocurrency regulation shifts from discussion to implementation, the U.S. banking industry is moving towards a multi-year on-chain transformation.

The Office of the Comptroller of the Currency (OCC) has granted conditional national trust bank charters to five digital asset companies, marking the federal level's acceptance of stablecoin and crypto custody businesses. The FDIC is expected to release a regulatory proposal for payment stablecoins this week, with rules required to be completed by July 2026 and effective by January 2027, as mandated by the GENIUS Act. Federal Reserve officials have also stated that they are working with other banking regulators to develop capital, liquidity, and diversification standards for stablecoin issuers.

The report also mentions that JPMorgan and Singapore's DBS Bank are exploring an interoperability framework for tokenized value transfer on public and permissioned blockchains. Bank of America predicts that in the future, bonds, stocks, money market funds, and cross-border payments may migrate on-chain, which will require banks not only to be familiar with blockchain technology but also to be willing to experiment with tokenized assets and on-chain settlement.