Banks May Soon Offer Crypto Services, Treasury Secretary Scott Bessent Says
Washington, D.C., Feb. 6 2026 – In a hearing before the Senate Banking Committee on Thursday, U.S. Treasury Secretary Scott Bessent hinted that traditional banks could eventually provide the same range of products that crypto‑focused firms currently offer. The remarks come as Congress wrestles with the pending “CLARITY Act,” a market‑structure bill that seeks to bring digital‑asset activities under a unified regulatory framework.
What Bessent Said
When Republican Senator Cynthia Lummis asked whether conventional banks might one day sell crypto‑related products, Bessent answered affirmatively: “I think that can happen over time.” He noted that the Treasury has already begun dialogues with a number of small and community banks to explore how they can participate in the “digital‑asset revolution.”
Bessent emphasized that any such evolution must be anchored by clear rules. “It is impossible to move forward without definitive guidance for crypto,” he told the committee, urging industry participants to support the CLARITY Act. “If you don’t want a regulatory framework, you can go to a jurisdiction like El Salvador,” he added, underscoring the administration’s view that constructive participation in the U.S. regulatory process is essential.
The CLARITY Act and Senate Stalemate
The CLARITY Act—short for “Crypto‑Lending and Asset‑Regulation Transparency Initiative”—has been stalled in the Senate Banking Committee. Bipartisan negotiations have hit a snag over several provisions, most notably the proposed caps on yields that stablecoin issuers can offer. Crypto exchanges such as Coinbase have opposed the limits, arguing that they could hinder competition and innovation.
Bessent warned that a lack of consensus could exacerbate “deposit volatility,” a scenario the Treasury finds “very undesirable.” Stable deposits are the foundation for banks’ lending activities; any sudden outflow—whether triggered by regulatory uncertainty or market panic—could compromise local credit availability.
Industry Concessions and Possible Path Forward
In response to the legislative gridlock, several crypto firms have signaled willingness to make compromises. Proposals on the table include granting community banks a larger role in the issuance and custodial functions of stablecoins, thereby aligning the interests of traditional lenders and digital‑asset providers.
If adopted, these concessions could:
- Integrate community banks into the stablecoin ecosystem, providing a familiar, regulated channel for small‑scale investors.
- Mitigate deposit flight by ensuring that stablecoin holdings are backed by institutions with established risk‑management practices.
- Create a more level playing field between legacy banks and crypto‑only firms, fostering competition while preserving financial stability.
Key Takeaways
| Point | Implication |
|---|---|
| Banks offering crypto products is plausible | The Treasury’s outreach to community banks suggests a long‑term strategy to blend traditional banking services with digital‑asset capabilities. |
| Regulatory clarity is a prerequisite | The CLARITY Act is positioned as the legislative vehicle to provide the needed rules; without it, the Treasury warns that “deposit volatility” could increase. |
| Stablecoin yield caps remain contentious | While regulators argue caps protect consumers, crypto firms view them as a barrier to growth; ongoing negotiations will determine the final shape of the bill. |
| Industry concessions may break the deadlock | Proposals to involve community banks in stablecoin frameworks could satisfy both regulatory concerns and market‑innovation goals. |
| Potential for a “dual‑offering” model | In the future, banks could market crypto‑related services—such as custody, staking, or stablecoin accounts—under the same regulatory umbrella that governs traditional deposits. |
Outlook
Bessent’s testimony signals a growing willingness within the U.S. government to acknowledge the convergence of conventional finance and crypto. While the CLARITY Act’s passage remains uncertain, the Treasury’s engagement with community banks and the crypto industry’s readiness to compromise hint at a possible middle ground. Should the legislation move forward, banks may gradually roll out crypto‑centric products, bringing digital assets into the mainstream banking experience while preserving the stability that regulators deem essential.
Source: https://cointelegraph.com/news/banks-crypto-could-offer-similar-products-in-time-bessent?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
