Bitcoin News Today: "Regulatory Shifts Let Banks Embrace Bitcoin Again"

U.S. Bank has announced the resumption of its cryptocurrency custody services, marking a significant development in the traditional banking sector’s engagement with digital assets. The service, initially introduced in 2021, has been expanded to include support for Bitcoin exchange-traded funds (ETFs), reflecting the growing institutional interest in crypto-backed investment products. The move follows increased regulatory clarity and a more accommodating stance from federal authorities under the Trump administration, which has been a vocal advocate for the crypto industry [1].

The custody offering is specifically targeted at institutional investment managers with registered or private funds seeking a secure and compliant solution for holding Bitcoin. NYDIG, a vertically integrated Bitcoin financial services and power infrastructure firm, will serve as the sub-custodian, providing the technical infrastructure and security for the underlying digital asset [1]. This partnership aims to bridge the gap between traditional financial institutions and the emerging crypto economy by offering institutional-grade custody and administration services [1].

The decision to resume custody services comes after a multi-year pause prompted by a 2022 U.S. Securities and Exchange Commission (SEC) accounting bulletin that imposed significant capital requirements on banks holding crypto assets. The guidance was repealed earlier this year, enabling banks like U.S. Bank to reintroduce crypto services with fewer regulatory constraints [3]. The Trump administration’s pro-crypto policies have since encouraged broader adoption, with several major financial institutions exploring or expanding their digital asset offerings [3].

U.S. Bank’s move aligns with the rising popularity of Bitcoin ETFs, which have attracted substantial investor interest amid the cryptocurrency’s strong performance this year. Approximately a dozen asset managers have launched spot Bitcoin ETFs since the SEC authorized such products in January 2025, with the largest among them, BlackRock’s iShares Bitcoin Trust, now boasting over $80 billion in market capitalization [3]. U.S. Bank’s inclusion of ETF support positions it to capture a share of this expanding market, offering a full-service solution for institutional clients who require custody, administration, and investment management [1].

U.S. Bank’s Wealth, Corporate, Commercial, and Institutional Banking division manages more than $11.7 trillion in assets under custody and administration as of June 30, 2025 [1]. This expansion into crypto custody reflects the bank’s broader strategy to innovate within the digital finance space and meet the evolving needs of its institutional clients. Dominic Venturo, U.S. Bank’s senior executive vice president and chief digital officer, emphasized the bank’s commitment to shaping the future of digital finance through expanded capabilities and innovative solutions [1].

The regulatory environment for crypto custody and trading continues to evolve, with the SEC and CFTC jointly signaling support for the trading of certain spot crypto assets on registered exchanges [2]. This collaborative approach reflects a broader effort to integrate digital assets into the U.S. financial system ahead of potential federal legislation. While the regulatory landscape remains dynamic, U.S. Bank’s renewed custody service underscores the increasing legitimacy of crypto within the traditional financial framework [1].

Source:

[1] U.S. Bank Resumes Bitcoin Cryptocurrency Custody Services for Institutional Investment Managers (https://ir.usbank.com/news-events/news/news-details/2025/U-S--Bank-Resumes-Bitcoin-Cryptocurrency-Custody-Services-for-Institutional-Investment-Managers/default.aspx)

[2] U.S. SEC, CFTC Combine Forces to Clear Registered Firms Trading of Spot Crypto (https://www.coindesk.com/policy/2025/09/02/u-s-sec-cftc-combine-forces-to-clear-registered-firms-trading-of-spot-crypto)

[3] US Bancorp revives institutional bitcoin custody service (https://finance.yahoo.com/news/us-bancorp-revives-institutional-bitcoin-120523648.html)