Rebecca Rettig, chief operating officer and chief legal officer at Jito Labs, said some banks mistakenly believe they must use permissioned networks to satisfy Bank Secrecy Act and sanctions requirements. She argued that financial institutions can operate compliantly on permissionless blockchains as well. In her view, the law calls for reasonable controls that match the level of risk, not zero risk and not ownership or control of the underlying infrastructure.
Rettig also said the Office of the Comptroller of the Currency had confirmed in November 2025 that banks may pay network fees on blockchains and hold related crypto assets. She added that technologies such as zero-knowledge proofs and confidential transfers can help institutions demonstrate compliance to regulators without revealing customer positions. According to her, that approach is consistent with the recently passed GENIUS Act in the United States, which places anti-money laundering and sanctions controls at the application layer.
According to Odaily, Rebecca Rettig, chief operating officer and chief legal officer at Jito Labs, said some banks mistakenly believe they must rely on permissioned networks to meet Bank Secrecy Act and sanctions requirements. She said financial institutions can also operate in compliance on permissionless blockchains.
Rettig said the legal standard is reasonable controls proportionate to risk, not zero risk and not control over the underlying infrastructure.
She also said that in November 2025, the U.S. Office of the Comptroller of the Currency confirmed that banks may pay network fees on blockchains and hold related crypto assets.
Rettig added that technologies including zero-knowledge proofs and confidential transfers can allow institutions to prove compliance to regulators without disclosing customer positions. She said that aligns with the recently passed GENIUS Act in the United States, which places anti-money laundering and sanctions controls at the application layer.
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