Jito Labs Executive Says Financial Institutions Can Operate Compliantly on Permissionless Blockchains

Rebecca Rettig, Chief Operating Officer and Chief Legal Officer of Jito Labs, pointed out that some banks mistakenly believe they must use permissioned networks to comply with the Bank Secrecy Act and sanctions laws. In reality, financial institutions can operate compliantly on permissionless blockchains. The relevant legal requirements call for reasonable controls commensurate with risk, rather than zero risk or control over the underlying infrastructure. In November 2025, the Office of the Comptroller of the Currency confirmed that banks could pay network fees on blockchains and hold related crypto assets. Technologies such as zero-knowledge proofs and confidential transactions allow institutions to demonstrate compliance to regulators without disclosing customer positions. This aligns with the recently passed GENIUS Act in the U.S., which places anti-money laundering and sanctions controls at the application layer.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.