The Congressional Research Service (CRS) published an analysis document titled ‘Crypto and Bank-Permissible Activities’ on September 30, 2026. The public research agency’s report identified 11 categories of crypto activities that would open to US banks and credit unions through the Senate version of the CLARITY Act.
The list of permissible activities includes digital asset underwriting and dealing authority. CRS findings show that these two relief provisions exceed the authority granted to US banks when dealing with comparable conventional securities instruments. Senator Cynthia Lummis noted that the draft legislation opens the door for US banks to buy and hold Bitcoin directly, arguing that expanding institutional powers could drive prices significantly higher.
Different Approaches in the Senate and House
Draft versions circulating in the Senate and House reflect two contrasting policy approaches. The Senate version allows all types of banking organizations and credit union networks to engage in all listed crypto activities. The bill removes the traditional divide between the ‘business of banking’ operational category and activities classified as ‘financial in nature’.
In contrast, the House version restricts the use of crypto and blockchain technology solely to legally authorized activities. It also requires financial holding companies to shift digital asset operations into non-bank subsidiaries to isolate direct exposure from the primary entity.
Stalled in Floor Vote
Efforts to ease banking regulations have stalled on the Senate floor. On September 15, US senators rejected a cloture motion by a narrow 49 to 50 margin. The level of support fell short of the 60-vote threshold required to advance the bill to floor debate.
Seven Democratic senators who voted against the measure downplayed speculation that the bill was doomed in Congress. They stated that the vote tally did not mark the end of the road for the legislation. The dissenting group reaffirmed their commitment to continue negotiations with sponsors.
Federal Reserve Implements GENIUS Act
Amid the stalled CLARITY Act discussions, the Federal Reserve continues to implement the previously enacted GENIUS Act. The regulation mandates that all stablecoins be fully backed by low-risk, liquid reserves such as T-bills. The operational framework sets an effective compliance deadline of January 18, 2027.
The rollout of the GENIUS Act has sparked objections across several sectors of the financial industry. Eight banking associations previously requested revisions to the stablecoin yield provisions, arguing they feature structures functioning similarly to deposit interest. Concurrently, 17 state attorneys general led by New York’s Letitia James filed a legal challenge against the regulatory foundation, arguing that the new provisions undermine states’ abilities to enforce their own securities laws.
The US banking landscape is gradually adapting to new standards, even as Capitol Hill continues to grapple with compromises over institutional authority.
Sourced from crypto.news.
Read also: Australia Ends Crypto Tolerance Era - Criminal Penalties and 10% Revenue Fines Take Effect October 1
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
