Congress is reportedly considering expanding crypto rules to allow banks and credit unions to hold digital assets, issue stablecoins, and use blockchain. According to new information from the Congressional Research Service, Policymakers are currently debating whether activities involving cryptocurrencies and digital assets (crypto) should be considered bank-permissible activities.

JUST IN: Congress considers expanding crypto rules to allow banks and credit unions to hold digital assets, issue stablecoins, and use blockchain.

— Watcher.Guru (@WatcherGuru) October 1, 2026

According to the report, any new legislation would result in a more durable outcome, reducing the likelihood of frequent regulatory changes. Furthermore, Congress may consider whether a more permanent solution allowing or limiting crypto activities would be preferable. In recent years, the policy debate on permissible activities has focused on crypto. Bank lawmakers have consistently maintained that banks can conduct crypto-related activities only if they are legally permissible and conducted in a safe and sound manner. However, that has changed in recent years, with the arrival of the second Trump administration and the growing popularity of cryptocurrency.

As the crypto clarity continues to be debated in the U.S. Senate, the future of digital assets in traditional finance remains a hot topic. The SEC has already agreed to begin working on clearer crypto regulation and new rules for digital assets to be handled by banks. The GENIUS Act already made stablecoin issuance, custody, and related activities allowed for businesses owned by banks this past summer.

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Whether any administration seeks to expand or constrain bank participation in crypto, the report suggests the regulatory baseline remains vulnerable to reversal unless Congress acts, and that a permissive stance would raise questions about capital, liquidity, anti-money-laundering compliance, and exposure to crypto-market volatility.

Bitcoin Magazine

UK Brings Crypto Under Full FCA Oversight for the First Time

The UK’s Financial Conduct Authority has opened applications for crypto firms to become authorized, bringing the sector under full regulation for the first time.

In a Wednesday announcement, the watchdog said companies can apply so that the crypto industry has “clarity and legitimacy.”

The UK is in the process of drafting a sweeping new crypto bill. The FCA finalized its regulatory framework for cryptoassets in June, and the regime is due to take effect in October 2027.  

“The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorisation and start preparing for regulation,” Dominic Cashman, director of authorisation at the FCA, said in a statement. 

The statement added that firms will have to demonstrate that they meet requirements covering consumer protection, customer-asset safeguarding, market integrity and financial resilience.

Britain is pushing ahead with digital asset legislation since last year recognizing bitcoin and other digital assets as property. The reform came from a 2023 recommendation by the Law Commission, which argued that digital assets did not fit neatly into existing legal categories.

Despite the FCA’s announcement, the UK currently is trailing behind Brussels and Washington with digital asset regulation. 

The EU’s Markets in Crypto-Assets regulation has applied to service providers since 30 December 2024. 

And the U.S. under President Donald Trump signed the GENIUS Act into law in July 2025, establishing a federal framework for dollar-backed tokens.

Despite lawmakers blocking landmark legislation the Clarity Act last month, U.S. regulators like the Securities and Exchange Commission have pushed ahead with rulemaking regardless. 

This post UK Brings Crypto Under Full FCA Oversight for the First Time first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.