The US Office of the Comptroller of the Currency (OCC) recently lifted key restrictions on banks engaging with crypto, marking a major turning point in the relationship between traditional finance and digital assets. With this decision, banks can now explore a wide range of crypto services, including stablecoin issuance, custody solutions, global payments, and asset tokenisation, without requiring prior approval. Banking has opened up a crypto future.
Liat Shetret, director of Global Policy and Regulation at Elliptic, believes that for banks, this shift is both an opportunity and a challenge.
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While regulatory clarity makes it easier to enter the crypto space, the responsibility to maintain stringent compliance standards remains. “This move is a clear signal that crypto is no longer a niche asset class but increasingly a mainstream financial prospect,” says Shetret.
Shetret highlights that while some banks are still hesitant, those that act swiftly and wisely can gain a competitive advantage. “This decision doesn’t just open doors; it accelerates the race for institutions to capture the crypto market,” she explains. “Those who move quickly and wisely will be poised for long-term success.”
The Compliance Challenge for Banks Entering Crypto
As financial institutions venture into digital assets, compliance emerges as the foremost challenge. Banks accustomed to traditional anti-money laundering (AML) frameworks must now adapt to the nuances of crypto-related financial crime.
“Instead of waiting for issues to arise, banks should focus on real-time compliance to catch risks early,” Shetret advises.
She emphasises that robust monitoring systems are crucial. “By setting up strong monitoring systems, they can – and should – prevent problems before they escalate and avoid costly damage control later,” she says. Financial crime risks in the crypto space differ from those in fiat transactions, making it essential for institutions to integrate specialised compliance solutions, such as blockchain analytics.
Global Regulatory Trends: A Shift Towards Clarity
The OCC’s decision reflects a broader global trend of regulators moving toward structured and well-defined digital asset policies. While Asia-Pacific (APAC) has led with experimental regulatory sandboxes, European regulators have prioritised public consultations and structured adaptation periods. In the US, the shift marks a transition from an enforcement-heavy approach to a more supportive regulatory framework.
“As regulators around the world gain more understanding of digital assets and their risks, they will likely adopt similar approaches to the OCC,” Shetret notes. “Providing more clarity and enabling financial institutions to engage with crypto in a more structured and regulated manner.”
This evolution presents banks with an opportunity to confidently expand into digital assets, provided they have the right compliance frameworks in place.
Elliptic’s Role: Enabling Safe Crypto Integration
As banks navigate this new terrain, compliance and risk management solutions are indispensable. Elliptic, a leader in blockchain analytics and financial crime compliance, plays a pivotal role in ensuring institutions can safely engage with digital assets.
“Our solutions allow banks to monitor transactions in real time, conduct thorough due diligence, and manage counterpart risks as well as sanctions evasion and money laundering,” Shetret explains. “By providing deep insights into blockchain activity, we enable banks to confidently onboard crypto businesses, conduct forensic investigations, and ensure their crypto services align with traditional financial crime controls.”
For banks hesitant to enter the digital asset space, leveraging such technology offers a way to mitigate risks while capitalising on emerging opportunities.
Regulatory Enforcement and Industry Maturity
High-profile regulatory actions, such as the takedown of Garantex, demonstrate the increasing sophistication of crypto compliance efforts. “The takedown of Garantex highlights the growing sophistication of regulatory efforts to ensure that crypto exchanges operate within legal frameworks,” says Shetret.
This case, she notes, reflects the evolving maturity of the crypto sector. Exchanges, law enforcement agencies, and compliance firms are working together to prevent illicit activity and foster a more secure digital asset ecosystem. “With the right compliance measures in place, bad actors can be identified and shut down, allowing the industry to flourish in a safer and more secure environment for everyone,” she underlines.
Key Trends Driving Crypto Adoption in 2025
Looking ahead, 2025 is poised to be a transformative year for digital assets. Elliptic’s State of Crypto 2025 report identifies three primary drivers of change: regulatory clarity, institutional adoption, and advanced compliance capabilities.
Shetret explains, “As we see with the OCC’s recent shift in stance, regulators are becoming more supportive of digital assets, providing a positive signal, one that institutions have been waiting for. This has sparked increased interest from financial institutions looking to engage with the digital asset space, with 77% of them seeing a strong business case for doing so.”
Simultaneously, compliance technology is evolving rapidly. Advanced blockchain analytics tools are enabling financial institutions to monitor digital asset transactions with greater precision, reducing risks while enhancing security.
She further adds: “These advancements, coupled with growing customer demand for crypto services, are propelling the industry into a new era. 2025 will be pivotal because we’re witnessing the crypto economy moving from the fringes to becoming an integral part of mainstream financial services, driving both innovation and the need for robust compliance.”
Preparing for the Future of Digital Assets
For financial institutions, the time to act is now. “Financial institutions should be taking proactive steps now to ensure they’re ready for the future of crypto regulation and innovation,” Shetret advises.
She recommends three key strategies:
- Invest in Compliance Frameworks: Institutions must integrate robust compliance measures tailored for digital assets to stay ahead of evolving regulations.
- Educate Teams and Customers: Raising awareness about crypto-related risks and opportunities will help financial institutions adapt to increasing demand.
- Form Strategic Partnerships: Collaborating with crypto businesses and compliance providers will accelerate banks’ ability to offer services such as custody, stablecoins, and cross-border payments.
- “The key is to start small, manage risks carefully, and stay agile as the regulatory environment continues to evolve. By doing this now, institutions can position themselves at the forefront of the digital asset revolution, ready to capitalise on new opportunities as the market matures,” she shares.
The Future of Banking, Crypto and Digital Assets
Over the next five years, Shetret predicts that the relationship between traditional banks and digital assets will deepen, transitioning from cautious exploration to widespread adoption.
“As regulatory clarity continues to improve, more banks will recognise the value of digital assets, not just as an investment or speculative opportunity, but as a core component of their financial services offerings,” she explains. “We’ll see more banks offering crypto-related products like custody services, stablecoins, and payments, while also leveraging blockchain for efficiency in areas including cross-border transactions and asset tokenisation.”
The collaboration between banks, fintechs, and regulators will strengthen, fostering a more dynamic and integrated financial ecosystem. “Traditional banks will increasingly rely on advanced compliance tools to manage risks and stay compliant,” Shetret adds. “This shift will create a more dynamic and integrated financial ecosystem, where digital assets are as much a part of the mainstream as traditional currencies.”
The OCC’s recent decision to lift barriers for banks engaging with crypto is just one piece of a larger global movement toward regulatory clarity and institutional adoption of digital assets. As banks navigate this evolving landscape, those that invest in compliance and innovation today will be best positioned to thrive in the future.
With the expertise of compliance partners like Elliptic, financial institutions can confidently integrate digital assets into their offerings while maintaining the highest standards of security and regulatory adherence.
As Shetret puts it: “By doing this now, institutions can position themselves at the forefront of the digital asset revolution, ready to capitalise on new opportunities as the market matures.”
