Rebecca Rettig: Financial institutions can operate compliantly on permissionless blockchain

Rebecca Rettig, Chief Operating Officer and Chief Legal Officer of Jito Labs, stated that banks and other financial institutions do not need to rely on permissioned chains and can operate legally on permissionless blockchains through application layer compliance controls. The relevant laws require reasonable controls commensurate with the risk, rather than controlling the underlying infrastructure. In November 2025, the Office of the Superintendent of the Currency confirmed that banks can pay network fees and hold encrypted assets on the blockchain. Zero knowledge proof and confidential transfer technology allow institutions to demonstrate compliance to regulators without disclosing customer positions, which is consistent with the US GENIUS Act.