In a report released Monday, Bank of America said recent actions by the OCC, FDIC, and Federal Reserve mark a shift in U.S. crypto policy from discussion to implementation, especially around stablecoins and tokenized deposits. The bank expects a multi-year transition that could move more payments and real-world assets on-chain under banking regulation, and argues that institutions will need to experiment with tokenized assets and settlement models to stay competitive.

PayPal has applied to establish PayPal Bank as a Utah-chartered industrial bank, aiming to expand into insured deposits, business lending, and interest-bearing savings accounts. At the same time, the company is deepening its crypto strategy through the PYUSD Savings Vault on Spark, which advertises a 4.25% APY and follows an earlier goal to grow PYUSD deposits from $200 million to $1 billion.

Crypto industry figures urged the US Securities and Exchange Commission at a recent roundtable to recognize legitimate uses for blockchain privacy tools beyond criminal activity. Speakers argued that existing AML and KYC frameworks are becoming outdated in the age of AI and that cryptography-based solutions could both improve security checks and better protect user privacy.

On Monday, PayPal submitted an application for a Utah state-chartered industrial bank license to establish an industrial loan company called PayPal Bank. The payments firm plans to serve US small businesses with lending, deposits, and direct access to payment networks while extending the reach of its PYUSD stablecoin. The move follows a broader rise in bank charter applications by crypto-related companies and builds on PayPal's existing digital asset integrations.

U.S. President Donald Trump stated during an Oval Office Q&A on Monday that he will review a possible pardon for Keonne Rodriguez, co-founder and CEO of Samourai Wallet, after directing Attorney General Pam Bondi to examine the case. Rodriguez was sentenced last month to five years in prison over operating the bitcoin wallet's crypto mixing feature, while his co-founder William Lonergan Hill received four years.

United States President Donald Trump said at a White House press conference on Monday that he would review the case of Samourai Wallet developer Keonne Rodriguez, who was sentenced in November to prison over his role in the crypto mixing protocol. Rodriguez and co-founder William Lonergan Hill received five and four-year sentences after pleading guilty to operating an illegal money-transmitting business, and supporters are now campaigning for a presidential pardon as conventional appeal options appear limited.

On Monday, Chairman Tim Scott said the Senate Banking Committee will not hold a markup on the crypto market structure bill this week, with a spokesperson targeting early 2026. The House passed the Digital Asset Market Clarity Act in July by a 294-134 vote, while senators continue bipartisan talks on ethics rules, stablecoin yields, and oversight.

Britain’s Financial Conduct Authority unveiled plans on Tuesday to bring cryptoasset firms under a dedicated regime. The consultation runs until February 12, with the framework expected to be finalized next year and applied from 2027. The FCA softened earlier positions, allowing platforms to list their own tokens and trade directly with clients, while proposing controls on market abuse and staking programs.