US banking regulation went through a major reset in 2025, marking one of the sharpest policy pivots in years. New leadership, a clear political shift, and rapid changes around digital assets, capital rules, and supervision reshaped the regulatory landscape. In 2026, the focus now turns to execution, and the consequences will be felt across banks, fintech firms, and crypto-linked institutions.
What changed in 2025
Crypto and digital assets moved into the mainstream
The biggest regulatory shift of 2025 was the federal government’s dramatic change in attitude toward digital assets. Early in the year, the administration signaled that blockchain and crypto innovation would be supported rather than discouraged.
That shift became law in July with the passage of the GENIUS Act, which for the first time created a federal framework allowing banks and certain nonbanks to issue stablecoins. This marked a turning point. Crypto activities were no longer treated as regulatory outliers but as part of the financial system.
Regulators reinforced this change by rolling back earlier restrictions. The OCC confirmed that national banks may:
- Hold digital assets to support blockchain networks
- Conduct limited crypto transactions without taking market risk
For banks, this opened doors that had effectively been closed for years.
New bank charters made a comeback
Another major theme of 2025 was the revival of new bank charters. After more than a decade of resistance, regulators showed new openness to fresh entrants, especially technology-driven firms.
Applications for limited-purpose national trust banks surged, many coming from fintech and digital-asset companies seeking to move payments, custody, and lending operations inside regulated banks.
At the same time, interest returned in industrial loan company charters, which allow firms to accept FDIC-insured deposits without becoming full bank holding companies. PayPal’s move to apply for a Utah-based ILC highlighted this trend.
Regulators emphasized governance and risk controls rather than blocking these models outright. Still, backlash from traditional banks began building late in the year, setting the stage for tension in 2026.
Capital rules began to shift
On bank capital, regulators made clear that the long-debated Basel III endgame would not move forward as originally proposed. Instead, officials signaled a more tailored approach.
The first step came in November with changes to leverage requirements for large banks. Regulators openly described this as only the beginning, with further capital reform likely in 2026.
Supervision refocused on real financial risk
Bank supervision also changed tone. Regulators repeatedly said exams should focus on material financial risk, not box-checking or governance formality.
One of the most notable moves was the effort to remove reputational risk as a standalone reason for supervisory criticism. Agencies also proposed changes to how enforcement findings are issued and appealed, aiming for greater transparency.
The Federal Reserve followed with its own changes, updating ratings so banks with limited issues could still be considered well managed and releasing supervision manuals that had previously been confidential.
What to expect in 2026
Stablecoin rules take center stage
The GENIUS Act requires regulators to finalize stablecoin rules by July 2026. These rules will define capital, liquidity, reserve backing, and governance standards.
The FDIC has already outlined how it plans to assess stablecoin risks. The remaining rules, expected in early 2026, will determine whether stablecoin issuance becomes a core banking business or stays niche.
More clarity on crypto activities
Beyond stablecoins, regulators are preparing additional guidance on:
- Tokenized deposits
- Other crypto-related bank services
- Limits on permissible activities
Banks are watching closely to see how much freedom they truly gain under the new framework.
Supervisory reform continues
Regulatory agencies are expected to push further reforms in 2026, including:
- Changes to enforcement standards
- Possible updates to the CAMELS rating system
- Closer alignment between large-bank supervision frameworks
The goal is consistency, fewer surprises, and clearer expectations for banks.
Debanking stays in focus
Debanking became one of the most politically charged banking issues of 2025, and it is not going away. Regulators and lawmakers accused past supervisory practices of encouraging banks to cut off lawful businesses, especially in crypto.
In 2026, debanking concerns are likely to merge with BSA and AML reform, potentially easing compliance pressure while discouraging overly defensive account closures.
Other major issues to watch
Several developments could shape the year ahead:
- Federal Reserve leadership change, with the chair’s term ending in May
- Growing scrutiny of private credit exposure
- New discussion around limited-access Federal Reserve accounts for specialized institutions
- Continued pullback from ESG-focused supervision
2025 marked a decisive turn in US banking regulation. The system shifted away from restriction and toward experimentation, especially around digital assets and new bank models.
2026 will be the test year. Regulators must turn new policies into durable rules, and banks must decide how aggressively to adapt. How stablecoins, crypto banking, capital reform, and supervision play out will shape the industry for years to come.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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