Incidental Powers

Definition ∞ Incidental powers denote the implicit authority granted to regulated financial institutions, such as national banks, to conduct activities not explicitly detailed in their foundational charters but considered necessary or convenient for executing their expressly authorized functions. In the digital asset context, this legal concept determines the permissible scope of crypto-related services that traditional banks may offer. It allows for operational flexibility within a defined regulatory perimeter. These powers support the core business activities.
Context ∞ The application of incidental powers to digital asset activities is a prominent topic in financial and cryptocurrency news, as regulatory bodies clarify permissible actions for traditional banks. Reports frequently discuss interpretations from authorities regarding bank custody of digital assets or participation in blockchain networks. The breadth of these powers significantly influences the pace of institutional adoption of cryptocurrencies and the integration of digital assets into mainstream finance.