Crypto policy is shifting from talk to implementation as the OCC, FDIC and Federal Reserve begin to outline a regulatory perimeter for stablecoins and tokenized deposits in the United States, Bank of America said in a Monday report.
Recent approvals and proposals mark the start of a multi-year transition that could push more real assets and payments onto the chain, said the analysts led by Ebrahim Poonawala.
The OCC’s recent conditional approval of national trust bank charters for five digital asset firms is a meaningful step toward federal acceptance of stablecoins and crypto custody, analysts wrote. The charters open the door to digital asset activity within the regulated banking system, provided it is offered as a fiduciary service with strong liquidity, compliance and risk controls, according to the analysts.
The FDIC is expected to release a notice of proposed rulemaking this week detailing how stablecoins issued by subsidiaries of FDIC-supervised banks can be approved, the analysts noted. These regulations, required under the GENIUS Act, must be finalized by July 2026 and take effect in January 2027.
The report also highlighted comments from Federal Reserve officials indicating cooperation with other banking regulators on capital, liquidity and diversification standards for stablecoin issuers, as mandated by the GENIUS Act. The analysts link this to a wider global push, highlighting a recent proposal by the Bank of England for a regime governing sterling systemic stablecoins, including asset holding requirements and caps on exposures.
Tokenized deposits vs. stablecoin
On the market structure side, Bank of America highlighted JPMorgan and Singapore-based DBS, which are exploring an interoperable framework for tokenized value transfer across public and permissioned blockchains.
This work, which builds on JPMorgan’s JPMD tokenized deposit initiative, underscores a lively debate about whether tokenized deposits are a better alternative to stablecoins, the report said.
Bank of America sees a plausible future where transactions in bonds, stocks, money market funds and cross-border payments migrate on-chain, supported by new regulations and institutional-grade infrastructure.
To prepare, banks need not only liquid blockchain, but a willingness to experiment with tokenized assets and on-chain settlement, the report added.
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