Permissionless Blockchains Can Operate Compliantly, Jito Labs Executive Says Banks Need Not Rely on Permissioned Networks

Odaily News: 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 meet Bank Secrecy Act and sanctions legal requirements, but financial institutions can operate compliantly on permissionless blockchains. The relevant legal requirements call for reasonable controls proportionate to risk, rather than zero risk or control over the underlying infrastructure.

She stated 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. Technologies such as zero-knowledge proofs and confidential transfers can enable institutions to prove compliance to regulators without disclosing client positions, which is consistent with the approach of the recently passed GENIUS Act in the United States that places anti-money laundering and sanctions controls at the application layer.