Recent guidance from US regulators allowing banks to act as validators in blockchain networks marks a significant advancement for institutional adoption, yet it raises concerns about increased centralization risks, according to Bohdan Opryshko, COO of staking service provider Everstake.
On March 7, the US Office of the Comptroller of the Currency (OCC) softened its position on banks’ engagement with cryptocurrency, including granting permission for banks to participate “in independent node verification networks,” the regulator announced.
Opryshko mentioned that the growing participation of US banks in proof-of-stake (PoS) networks like Ethereum and Solana could present a “double-edged sword.”
“Should banks establish themselves as leading validators, it may lead to power becoming centralized, undermining the decentralized essence of PoS networks,” Opryshko remarked on March 12.
Furthermore, the influx of additional funds into PoS networks might depress staking yields, which could negatively impact smaller validators, he noted.
“If significant institutional players, such as banks, enter the staking arena and suddenly repose substantial funds, […] it could trigger a notable decline in staking rewards for all other participants,” Opryshko explained.
Staking yields as of March 12. Source: Staking Rewards
Related: OCC outlines crypto banking following Trump’s promise to end Operation Chokepoint 2.0
As of March 12, stakers of Ether are reportedly earning around 5.5% APR, while those staking Solana are yielding nearly 8%, according to data from Staking Rewards.
Staking entails securing blockchain networks by pledging cryptocurrency as collateral with validators in return for rewards.
The Debanking Dilemma
The OCC’s announcement followed US President Donald Trump’s commitment to terminate a protracted regulatory crackdown that limited crypto companies’ access to banking services.
Public frustration in the crypto sector regarding the so-called “debanking” reached a peak after a lawsuit initiated by Coinbase in June 2024 uncovered correspondence revealing US banking regulators had urged specific financial institutions to “pause” their crypto banking activities.
In a January 23 executive order, Trump — who has pledged to establish America as the “world’s crypto capital” — instructed agencies to focus on ensuring “fair and open access to banking services” for digital asset firms.
As of March 12, Anchorage Digital stands out as the only federally chartered US bank providing cryptocurrency staking services.
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