U.S. lawmakers address cryptocurrency banking authority and taxation

The Congressional Research Service (CRS) has identified a regulatory gap regarding the authority of U.S. banks to provide cryptocurrency-related services. According to a CRS assessment, current statutory and regulatory frameworks do not definitively establish whether banks possess the legal authority to offer these services. The agency noted that while regulators may provide interpretive guidance, such guidance can be revised or challenged, leaving institutions in a state of legal uncertainty. The CRS suggested that new legislation could serve as a mechanism to clarify this authority.

In a separate legislative development, Senate Republicans have introduced a bill focused on the taxation of digital assets. This proposal follows a failed procedural vote on broader market-structure regulation, signaling a shift toward tax policy. The bill includes provisions regarding staking and mining income, wash sales, and potential de minimis exemptions. Key figures involved in these efforts include Senators Cynthia Lummis and Steve Daines, while Senate Finance Chair Mike Crapo has expressed interest in finalizing crypto tax legislation by the end of the year.