Fluctuations in US Bank Crypto Regulations Under Different Presidents Raise Stability Concerns

According to the Congressional Research Service (CRS), regulatory changes can be swiftly reversed, unlike laws that tend to remain stable over time. This has significant implications for Bitcoin holders regarding the accessibility of banking services for their cryptocurrency investments. As of October 2, 2026, Bitcoin was trading at approximately $85,975, reflecting a decline of 3% this year and a drop of 28.7% over the past year. This raises questions about the longevity of regulatory optimism for cryptocurrency amid potential administration transitions.

In July 2020, during President Trump's first term, the Office of the Comptroller of the Currency (OCC) allowed national banks to hold cryptocurrency for their clients. The OCC further provided guidance permitting banks to manage stablecoin reserves and operate blockchain nodes. However, the Biden administration reversed this approach. By November 2021, the OCC required banks to secure supervisor approval for any crypto activities, and in 2022, the SEC issued accounting guidance that made crypto custody more expensive by requiring firms to list customer crypto as liabilities. Early 2023 saw the Federal Reserve, FDIC, and OCC issue warnings about the risks associated with cryptocurrencies.

The regulatory environment flipped again when Trump returned to office in January 2025. The SEC rescinded its accounting guidance, the OCC lifted the approval requirement, and the banks' previous warnings from the FDIC and Fed were retracted by that spring.

The CRS suggests that a law provides greater stability compared to regulatory guidelines. Regulatory agency leaders can issue or revoke rules without Congressional approval. For instance, the SEC reclassified XRP as a digital commodity in March 2026 but could easily reverse that decision in the future. Conversely, passing a law requires a majority vote in both Houses of Congress and the president's approval, making it more challenging to repeal.

In July 2025, the GENIUS Act established stablecoin regulations, serving as a law. However, the broader CLARITY Act stalled in the Senate in September, leaving Bitcoin's banking access dependent on the changing agency rules.

On October 1, 2026, the SEC proposed a cryptocurrency custody framework aimed at investment advisers and funds, potentially allowing them to hold crypto on behalf of clients through state trust companies and brokers. This proposal, open for public comment, is an indication of the less stable regulatory environment contrasted with legislative action.

Some major banks have already taken steps based on recent regulatory changes, with one institution citing the SEC's actions to justify raising its Bitcoin price target. In light of the Senate's failure to pass the CLARITY Act, adjustments in expectations from experts also reveal a reliance on future regulatory support.

The current positions of regulators may not withstand the test of time, suggesting that the favorable policies in place could be temporary. Until Congress enacts comprehensive crypto legislation that solidifies banking and custody guidelines, uncertainty regarding the future of bank crypto rules remains.