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Jane Fraser, the chair and CEO of Citigroup, has thrown her weight behind passing crypto legislation in the US, specifically championing the GENIUS Act as a framework that could unlock meaningful participation by traditional banks in the digital asset space. Her comments came during the bank’s Q2 2025 earnings discussions, and they represent one of the clearest endorsements of crypto regulation from a major Wall Street chief executive to date.
Fraser acknowledged that she and others in the banking industry continue to push for changes to the bill’s specifics. But her broader message was unambiguous: get something on the books.
What Citi is actually building
Fraser confirmed that Citigroup is actively exploring the issuance of a Citi-branded stablecoin. That alone would make it one of the first major US banks to enter the stablecoin market directly, a space currently dominated by Tether’s USDT and Circle’s USDC.
But the bank’s near-term priority appears to be tokenized deposits rather than a standalone stablecoin. Citi began rolling out tokenized deposit capabilities in late 2024, and Fraser has framed them as the more practical starting point. The reasoning is straightforward: tokenized deposits operate within existing banking regulatory frameworks, which means less operational friction and fewer compliance headaches compared to launching an entirely new digital currency.
On top of that, Citi plans to launch crypto custody services in 2026. Custody, the secure storage and management of digital assets on behalf of clients, is the unsexy but essential plumbing that institutional investors need before they’ll commit serious capital to any asset class.
The GENIUS Act’s path forward
Fraser’s endorsement comes at a moment when the GENIUS Act has real legislative momentum. The bill, which establishes a federal regulatory framework for stablecoins, passed the US House of Representatives with a bipartisan vote of 308-122.
The legislation would create licensing and reserve requirements for stablecoin issuers, giving banks like Citi a clear legal pathway to enter the market. Without such a framework, major financial institutions have largely stayed on the sidelines, unwilling to build products on regulatory quicksand.
Broader crypto market structure legislation, which would address how digital assets beyond stablecoins are classified and regulated, is expected to remain a topic of active discussion into late 2025 and potentially early 2026. Fraser indicated that Citi is participating in Senate engagements on these topics, positioning itself as both a stakeholder and a shaper of the rules.
Why Wall Street’s pivot matters
When the CEO of a bank with roughly $2.4 trillion in assets says she wants crypto legislation passed, it sends a signal that reverberates far beyond one institution’s strategy.
For starters, Citi’s moves are likely to accelerate similar initiatives at peer institutions. JPMorgan has already been active with its Onyx blockchain platform, and Bank of America has made quieter investments in blockchain infrastructure.
There’s a counterargument worth noting. Some crypto purists worry that heavy bank involvement could reshape the ecosystem in ways that favor centralized players and dilute the decentralized ethos that animated the space originally. A Citi stablecoin, for instance, would be a fully permissioned, bank-controlled instrument, a far cry from the trustless ideal.
If the GENIUS Act clears the Senate and reaches the president’s desk, expect a wave of bank-issued stablecoin announcements to follow. If it stalls, Citi and its peers will likely continue building on the tokenized deposit side, where they don’t need new legislation to operate. Either way, Fraser has made one thing plain: Citigroup sees digital assets as a permanent part of the financial landscape, not a phase it can afford to sit out.
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