The landscape of crypto policy is evolving from discussion to action, with the OCC, FDIC, and Federal Reserve beginning to outline a regulatory framework for stablecoins and tokenized deposits in the U.S., according to a Monday report from Bank of America.
Recent approvals and proposals signal the beginning of a multi-year transformation that could lead to an increased migration of real-world assets and payments onto blockchain, as stated by analysts led by Ebrahim Poonawala.
The OCC’s recent conditional approval of national trust bank charters for five digital-asset firms represents a significant move towards federal recognition of stablecoins and crypto custody, the analysts commented. These charters facilitate digital-asset operations within the regulated banking sector, as long as they comply with liquidity, compliance, and risk management standards.
The FDIC is anticipated to issue a notice of proposed rulemaking this week, specifying how payment stablecoins from subsidiaries of FDIC-supervised banks can gain approval. These rules, required by the GENIUS Act, are set to be finalized by July 2026 and come into effect by January 2027.
The report also noted remarks from Federal Reserve officials suggesting cooperation with other banking regulators on capital, liquidity, and diversification standards for stablecoin issuers, as required by the GENIUS Act. This aligns with a broader international initiative, pointing to a recent proposal from the Bank of England for a framework governing systemic sterling stablecoins, including asset-holding requirements and exposure limits.
Tokenized deposits vs. stablecoin
From a market-structure perspective, Bank of America highlighted that JPMorgan and DBS from Singapore are investigating an interoperable framework for tokenized value transfer across both public and permissioned blockchains.
This effort, which builds on JPMorgan’s JPMD tokenized deposit initiative, emphasizes an ongoing debate about whether tokenized deposits could serve as a superior alternative to stablecoins, according to the report.
Bank of America envisions a future where transactions involving bonds, stocks, money-market funds, and cross-border payments shift onto blockchain, fueled by new regulations and robust institutional infrastructure.
For this transition, banks will need not only a strong understanding of blockchain technology but also an openness to experimenting with tokenized assets and on-chain settlements, the report added.
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