Background
From buzzwords like stablecoin to legislation like the GENIUS Act, the digital banking ecosystem has generated headlines within the past year. The digital banking space is characterized by an abundance of moving parts and complex inner workings, which have seen an uptick in activity among banks or nonbank financial institutions and digital assets. For comparison, think of this space as an airport, with pilots as banks or nonbank financial institutions, planes as their digital assets, air marshallers as federal agencies, and air traffic control as the president and Congress. Traditionally, air traffic control was very restrictive with which pilots were allowed to take their planes into flight, telling the marshallers to only guide a specific number through. Think of this guidance as closed-ended, with pilots prohibited from changing any aspects of the flight like the departure gate or flight path. However, with the change of administration, air traffic control shifted its focus. Now marshallers are less restrictive, and pilots have much more freedom like private charters. We are entering into a time of permission with digital banking, and to successfully navigate this airspace, it is crucial to keep track of changes from the White House, Congress, and federal agencies.
In this article, Forvis Mazars explores recent changes by government agencies and impacts of key legislation on the digital ecosystem in banking during the Trump administration.
From the President’s Desk
Since taking office, President Donald Trump has updated his technology leadership with the appointment of several pro-digital asset advocates, like David Sacks as White House AI and Crypto Czar and Bo Hines as Executive Director of the new Presidential Council of Advisers for Digital Assets. In addition, there has been movement on the federal agency front as President Trump nominated digital asset supporters to serve as agency heads. These appointments set up a smooth transition for digital assets into traditional banking, as their backgrounds offer an eagerness to explore and integrate more technology into everyday banking.
From an administrative perspective, President Trump issued two executive orders (EO) relating to the digital banking space—EO 14178, “Strengthening American Leadership in Digital Financial Technology,” and EO 14233, “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile.” These EOs show the U.S. is beginning to give digital assets a seat at the financial policy table, speeding up their inclusion into everyday banking.
In addition to rescinding EO 14067, issued under President Joe Biden, EO 14178 establishes the president’s Working Group on Digital Asset Markets, comprised of representatives from various financial, legal, and national security agencies. Notably, there is a lack of representation from any U.S. banking regulator in this group. The EO lays out several key milestones for the working group, including a review of all the current rules and guidelines impacting digital assets, suggesting necessary updates, removals, or additions. Furthermore, the group is tasked with investigating whether the U.S. should build and manage a national stockpile of digital assets. The final aspect of the order suggests a transition from Central Bank Digital Currencies (CBDCs) to supporting stablecoins backed by the U.S. dollar. This working group will report back to the president by with recommendations to help shape how digital assets and blockchain are regulated moving forward.
Building on EO 14178, EO 14233 calls for the establishment of an official Bitcoin reserve and U.S. Digital Asset Stockpile. This EO is all about ensuring the federal government handles its Bitcoin and other digital assets obtained from fines or seizures in a secure and smart way. In addition, it puts the Secretary of the Treasury in charge of discovering the amount of digital assets each agency has and determining the legal complexities of managing those assets. To begin the journey of turning this EO into law, H.R. 3798 was introduced in the House.
The Trump administration is working to take a lead role in the digital asset space by choosing agency leaders who strongly support pro-crypto policies while simultaneously setting the stage for introducing new guidance, laws, and regulations. As this space continues to change, it is important that financial institutions stay alert and prepared. This can look like updating internal processes, improving digital asset systems, investing in employee training on blockchain technology, and working closely with regulators.
The Word on Capitol Hill
Two major digital banking bills have been placed on the agenda in Congress. The first bill was the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act,1 and was introduced in the Senate by Tennessee Senator Bill Hagerty. This bill centers on establishing a regulatory framework for payment stablecoins, in which only certain approved companies may issue digital assets in the form of tokens. Furthermore, the bill outlines the qualifications of what institutions can do to become approved, taking into consideration previously approved companies for digital assets like Bitcoin. The act is pivotal for institutions as it empowers banks to integrate stablecoins into their core service lines. See our FORsights™, GENIUS Act – Ushering in a Transformative Era of Digital Assets, for more on this topic.
The second, the Digital Asset Market Clarity Act, or CLARITY Act,2 introduced to the House by Arkansas Representative J. French Hill, focuses on creating a regulatory framework for digital assets. However, the CLARITY Act differs by detailing the responsibilities of the SEC and CFTC in the future digital banking space. Included in this bill are efforts to provide uniform international standards for regulation within this space and for both agencies to conduct a joint study on the complexities of decentralized finance, or DeFi. Although it may not appear as permissive as the GENIUS Act, the CLARITY Act provides the SEC and CFTC explicit jurisdiction to create a system to curate digital commodity sales. This system would act as a road map to reducing legal risk and allowing compliant innovation of digital asset services.
With the overturning of the Chevron deference in 2024, the regulatory agencies must tread carefully when issuing new guidance or regulations for matters that do not have an accompanying law. Without specificity in the law, courts can overturn this guidance or these regulations. If these bills are passed, guidance is expected to follow after a minimum of 12 to 18 months. Today, financial institutions can familiarize themselves with the content of each bill, understanding how it could impact any planned operations with digital assets.
Agency News
Like their executive and legislative counterparts, federal agencies are moving toward a more flexible stance on digital banking.
The SEC announced the creation of the Crypto Task Force, built to clarify how federal securities laws apply to digital and crypto assets, cryptocurrencies, digital coins, and tokens. The task force also recommends policy measures to support innovation while protecting investors. This helps draw clear regulatory lines, develop usable frameworks, and ensure enforcement resources are carefully deployed. Additionally, the SEC issued Staff Accounting Bulletin (SAB) No. 122, reversing SAB No. 121, which provided interpretive guidance on recording off-balance-sheet crypto-custody obligations. For possible future costs, this has the potential to make it easier for companies to meet tougher financial requirements and offer more crypto-related activities.
The CFTC positioned itself on removing ambiguity and streamlining oversight to provide greater transparency to banks wishing to participate in the digital banking ecosystem. Early steps began with the removal of Staff Advisory No. 23-07,3 an attempt to treat digital asset derivatives the same as other products regulated by the agency. A month later, Acting CFTC Chairman Caroline Pham voiced support for EO 14219, which required agencies to review all regulations and flag those that exceed statutory or constitutional authority, impose unjustified costs, or hinder innovation. Furthermore, Chairman Pham directed staff to recenter their focus on fraud cases, emphasizing non-persecution unless there is clear proof of willful misconduct in alignment with the Department of Justice (DOJ) efforts to end “regulation by prosecution” within the digital asset space. Chairman Pham’s shift highlights the agency’s objective to foster innovation while protecting consumers in the development of digital assets. Furthermore, the CFTC’s efforts are now centered on removing ambiguity and streamlining oversight to provide greater transparency to banks wishing to participate in the digital banking ecosystem.
The Office of the Comptroller of the Currency (OCC) published two Interpretive Letters, 1183 and 1184, surrounding the digital banking ecosystem. Letter 1183 gives permission for national banks and federal savings associations to participate in owning crypto assets and certain stablecoin activities. In addition, it revokes the requirement that OCC-supervised institutions need to have supervisory permission or adequate controls in place before they participate in such activities. Letter 1184 expands on this, confirming that national banks and federal savings associations can buy and sell these assets, while simultaneously allowing them to outsource certain crypto-asset activities to third parties.
The FDIC released a withdrawal of the Financial Institution Letter (FIL) 16-2022. The FIL required FDIC-supervised institutions who wanted to engage in crypto-related activities had to get approval from the agency. Now, that approval is not necessary for permissible crypto activities, as long as these institutions act in a safe and compliant manner. The Federal Reserve Board (FRB) then followed suit by announcing a withdrawal4 of bank guidance on crypto assets and dollar token activities. This removal is to stay aligned with evolving risks within the digital asset space, while also supporting innovation. A review of banks’ crypto-asset activities will occur during the normal supervisory process. The FDIC is making an effort to reduce bureaucratic hurdles for banks that wish to participate in approved crypto activities, perhaps hoping to create more incentive for banks to innovate in this space.
The Consumer Financial Protection Bureau (CFPB) ordered the immediate withdrawal of 67 interpretive rules,5 policy statements, and advisory opinions. The CFPB gave three reasons for the withdrawal: reducing compliance burdens, streamlining bureaucratic efforts, and the belief that regulated entities understand guidance is non-binding. Although the withdrawal of these rules provides financial institutions greater headway to innovate and explore digital asset products, early indicators show uncertainty with how consumer protection laws, regulations, and supervisory guidelines will impact these emerging technologies.
Jonathan Gould received Senate confirmation to serve as Chairman of the OCC. Gould’s background is centered in crypto activity, most famously for serving as the Chief Legal Executive for Bitfury, a blockchain company. Gould’s official plans for crypto activities have not been released but are expected after his formal swearing-in ceremony.
The agencies—FRB, FDIC, and OCC—released a joint statement6 on risk-management considerations for crypto-asset safekeeping. The joint statement called for banks to outline potential risks that could arise while holding crypto assets on their customers’ behalf. No new expectations were released in this statement, more serving as an announcement to provide clarity and ensure banks are checking their compliance with current laws and regulations in this area. The combination of Gould’s confirmation and the joint agency statement suggest an effort to strengthen risk management without damaging efforts to further digitalize modern banking, signaling a shift from tolerance to enthusiasm.
How Forvis Mazars Can Help
Whether it comes through executive, legislative, or agency channels, there are clear efforts to establish frameworks and set rules for this unexplored space of digital banking, marking its importance. As financial institutions look to the future, it is crucial that they prepare themselves to handle the changing nature of regulation to remain competitive. Regardless of the avenue taken to approach digital asset markets, it is of the utmost importance that financial institutions understand the limits of their risk appetite profile and risk management framework. In addition to this understanding, financial institutions must have a plan to implement controls that monitor and review their respective digital presence and relevancy. Getting the go-ahead from air traffic control and the marshallers is just the first step. With digital assets gaining momentum, it’s time to lift off, stay on course, and navigate this new financial airspace with purpose and precision. Don’t fly alone. Forvis Mazars offers global compliance and regulatory management strategies.
For more information, reach out to a Forvis Mazars professional.
- 1U.S. Congress. (2025). S.1582 – GENIUS Act: Guiding and Establishing National Innovation for U.S. Stablecoins Act. 119th Congress. https://www.congress.gov/bill/119th-congress/senate-bill/1582/text
- 2U.S. Congress. (2025). H.R.3633 – Digital Market Clarity Act of 2025. 119th Congress. https://www.congress.gov/bill/119th-congress/house-bill/3633
- 3Commodity Futures Trading Commission. (2025, June 30). CFTC proposes new guidance on digital asset market structure and stablecoin oversight. https://www.cftc.gov/PressRoom/PressReleases/9060-25
- 4Board of Governors of the Federal Reserve System. (2025, April 24). Federal Reserve Board issues proposed rule to strengthen oversight of stablecoin liquidity frameworks. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250424a.htm
- 5Federal Register. (2025, May 12). Interpretive rules, policy statements, and advisory opinions; withdrawal. 90 Fed. Reg. 38842. https://www.federalregister.gov/documents/2025/05/12/2025-08286/interpretive-rules-policy-statements-and-advisory-opinions-withdrawal
- 6Office of the Comptroller of the Currency. (2025, July 18). OCC Seeks Feedback on Liquidity Risk Management for Stablecoin Issuers. https://www.occ.gov/news-issuances/news-releases/2025/nr-ia-2025-68.html