Banks and Crypto Could End Up Offering Similar Products: Bessent

• Banks and crypto firms may offer similar products in the future.
• Lawmakers continue to debate crypto rules under the CLARITY Act.
• Preventing bank deposit instability remains a top priority for regulators.

US Treasury Secretary Scott Bessent told lawmakers that the gap between traditional banking and crypto may shrink over time. Speaking before the Senate Banking Committee, he said banks and crypto firms could eventually offer similar financial products as digital assets become more integrated into the financial system.

Bessent made the remarks while answering a question from Senator Cynthia Lummis, who asked whether banks and crypto companies might one day compete in the same product categories. He said that the outcome is possible and noted that regulators already work with small and community banks to help them explore digital asset services.

The conversation reflects a broader shift in how US policymakers view crypto. Recent crypto regulation discussions and ongoing stablecoin policy debates show growing acceptance that digital assets are not going away and need clear rules.

Clear rules matter for crypto’s future

Bessent said that crypto simply cannot move forward without regulatory clarity. He called upon industry players to support the crypto market structure bill called the CLARITY Act, which helps ensure the definition of oversight responsibilities and lowers legal uncertainty.

He also warned that a complete rejection of the regulation is unrealistic. Bessent said firms unwilling to operate under US rules should consider other jurisdictions. At the same time, he stressed that regulation must protect users without killing innovation.

According to Bessent, the goal is to bring crypto under safe and responsible oversight while still allowing the flexibility that makes digital assets attractive in the first place.

Deposit stability remains a major concern

The CLARITY Act has stalled in the Senate Banking Committee as lawmakers negotiate changes to the bill. One of the biggest disagreements involves stablecoins, especially concerns that high yields could encourage users to pull money out of banks.

Bessent said deposit volatility is a serious problem. Stable deposits allow banks to lend to local communities, and sudden outflows could weaken that system. He said the Treasury is working to make sure crypto growth does not trigger large deposit shifts.

Some crypto companies have reportedly offered compromises, including giving community banks a bigger role in stablecoin issuance and custody. Similar concerns appear in global policy discussions, including guidance from the Bank for International Settlements and frameworks emerging in the European Union.

Banks and crypto may slowly meet in the middle

Bessent’s comments suggest a future where banks and crypto firms look less different than they do today. Banks may provide tokenized assets or blockchain-based payments, and crypto firms adopt stronger compliance with risk controls.

The developments, in the form of US stablecoin legislation and other directions by the US Treasury, indicate integration rather than separation.

The message from Bessent for now is one of balance. He wants innovation to happen, banks to be stable, and crypto to operate within clear legal confines. And if lawmakers ultimately succeed, the lines between banking and crypto could slowly fade, changing how people ultimately access financial services.

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