Banks' New Menu: Underwrite Crypto, Deal Crypto, Pray Crypto 📜

A nonpartisan Congressional Research Service report published September 30 has placed the fight over permissible bank crypto activities back on Capitol Hill's front burner, detailing how the CLARITY Act would formally authorize 11 categories of digital asset activity for all U.S. banking organizations and credit unions. The CRS analysis covers both the Senate version and the House-passed bill H.R. 3633, and was circulated widely across crypto accounts on October 1.

According to the report, the Senate text would add digital asset underwriting and digital asset dealing to the list of permissible activities — a scope that CRS says exceeds what banks are currently allowed to do in traditional securities markets. The 11 categories also include activities related to custody, lending against digital assets, and operating blockchain nodes.

The bill's path forward remains uncertain after the Senate's 49-50 cloture failure on September 15, which blocked advancement of the measure. Banking industry groups have raised concerns about potential deposit flight and safety risks tied to expanded digital asset activity, contributing to the opposition that stalled the procedural vote in the Senate.

The CLARITY Act is being debated in conjunction with the GENIUS Act, the stablecoin-focused legislation that has moved alongside the broader market structure bill through Congress. Both measures have drawn significant attention from the crypto industry and traditional financial institutions weighing the implications of formal on-chain activity within the regulated banking perimeter.

The CRS report does not endorse either version of the bill and instead lays out the textual differences between the House and Senate drafts for lawmakers. Crypto advocacy accounts framed the document as a milestone for institutional adoption, while banking associations cited deposit-flight and safety concerns as reasons to narrow the scope of permissible activities.